If you’re a company, partnership or a self-employed individual working in the building or construction industry, you may have to pay tax under the Construction Industry Scheme (CIS).
This tax deduction scheme refers to payments made from contractors to subcontractors (not employees, as these are covered by PAYE). Contractors deduct money from a subcontractor’s payments and pass it on to HMRC.
Talk to one of our accountants now on 0330 041 6091 or request a call back. If you’re ready to sign up you can do so by selecting one of the options below:
You must register with HMRC as a contractor if you pay subcontractors for construction work. If your business doesn’t do construction work but you spend over £1 million a year on construction over a 3-year period, you also need to register.
If you work for a contractor, you have to register as a subcontractor. In order to receive gross income from a contractor, a subcontractor must pass three tests:
Business Test – proving the business is considered construction work (for example, site preparation, demolition or decorating).
Turnover Test – £30,000 for sole traders, £30,000 for each partner in a partnership, or, at least, £100,000 for the whole partnership.
Compliance Test – taxation and documentation must be in order, and payments have to be on time.
Register you with HMRC
Help you avoid penalties due to late returns
Keep your accounts and records in order
Ensure payments are done correctly within the scheme
Ensure you’re up to date with any changes to CIS
Supply deduction statements to your subcontractors
And more
As a contractor in the construction industry, you have certain regulatory obligations to meet – but you’re also busy growing your business, so why not let us focus on all the admin?
Talk to one of our accountants now on 0330 041 6091 or request a call back. If you’re ready to sign up you can do so by selecting one of the options below:
“This is the 3rd accounting firm I am using and I am finally happy as things are done properly, on time and without mistakes or lapses. I am also quite happy that it is the same accountant that answers all my queries.”Michelle
“The accountant I've been working with has been absolutely fantastic, particularly with providing fast and thorough responses to all of my questions (and there have been a lot!). I am continually impressed and couldn't be happier with the quality of service.”Eugene
"I am so pleased I switched. The service from Gorilla is exceptional, they all work to a very high standard. Gorilla is a really great accountancy service and I would give 11 out of 10 if I could!"Jaspal
We would love to update you on exclusive offers, handy guides and the latest Gorilla Accounting info.
Head Office
Unit B Lostock Office Park
Lynstock Way
Lostock
Bolton BL6 4SG
Opening Hours
Monday to Friday
9am - 5pm
