We make it easier for you to pay tax via the CIS scheme.
If you work as a construction subcontractor, you must register for CIS – the Construction Industry Scheme. CIS is administered through a payroll scheme. We can do this for you.
All CIS deductions relating to your limited company will then be part of the data submitted to HMRC via your monthly payroll. This will then be automatically offset against the payment of PAYE/NICs/CIS due.
Your subcontractors and contractors must also be registered with HMRC. HMRC will tell the contractor whether they should deduct 20% or 30% tax.
Frequently Asked Questions about CIS
Q: Do I need to register with CIS if I use subcontractors?
A: Yes, you do. This is a legal requirement.
Q: Do I need to register for CIS if I work as a subcontractor in the construction industry?
A: Yes, you do. This is a legal requirement.
Q: Why is tax deducted from my invoices?
A: HMRC deducts tax from your invoices to ensure that advance tax payments are made. In certain cases, you will be able to get a refund at the end of the tax year (5th April).
Q: What is a Unique Taxpayer Reference (UTR)?
A: When you register as self-employed with HMRC, you will be allocated a unique taxpayer reference – a UTR.
Q: Do I need a UTR to register for CIS?
A: Yes. You will need a UTR so you can register for CIS. Then, once you file your self-assessment tax return, you may get a refund.
Q: Do I need to give payslips to contractors?
A: Yes. You should supply payslips to contractors in the same way as you do for your employees.
If you’re a limited company which has been trading for at least 12 months, you can be paid without deduction of CIS tax.