Resources

Self Assessment – Deadline extension news

HMRC issued new help for self assessments due on the 31st January.

They haven’t extended the deadline but have extended the penalty free period.

CIS Contractor – Construction Industry Scheme

CIS (short for “The Construction Industry Scheme“) was set up by HMRC to collect income tax throughout the year from people working in the construction industry.

Construction companies deduct tax on behalf of their workers (subcontractors) and send the money to HMRC as tax payments:

• 20% for workers who have registered themselves as subcontractors with HMRC
• 30% for those who have not.

Note that CIS only applies if you work in construction as a subcontractor and you have registered for CIS. 

Registration

You will need to register as a CIS contractor if you plan on paying subcontractors for ‘construction work’. CIS covers most construction work to a permanent or temporary building or structure.

 For the purpose of CIS, construction work includes:

• Preparing the site, e.g. laying foundations and providing access works
• Demolition and dismantling
• Building work
• Alterations, repairs and decorating
• Installing systems for heating, lighting, power, water & ventilation
• Cleaning the inside of buildings after construction work

Verification

As a CIS contractor you have a duty to deduct the correct amount of tax from payments made to CIS subcontractors. 

In order to know which rate to deduct from your subcontractors (30%, 20% or  0%) you need to verify them with HMRC before you pay them. It’s important that you verify contractors because if you deduct too little from them, you could be liable for the difference!

If we (Addison accounts & Training Ltd) verify your CIS contractors for you, you’ll need to get them to fill out the following form so that we can verify them:

New CIS application

State Pension forecast

State Pension forecast application

Frequently asked Questions

Its Q&A time!

At Addison Accounts we encourage an environment for our clients to ask questions, which means we don’t hide behind emails and would happily join you for a coffee to answer any further questions.

We want our clients to be able to pick up the phone and ask away.