CIS applies to most workers in the construction industry.

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As a contractor you are required to deduct CIS tax from subcontractors and submit this as CIS returns to HMRC.

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As a subcontractor, you are required to complete a self-assessment and, in some cases, may be eligible to claim a CIS refund (where applicable).

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Tax by Sterling offers its services to both contractors and subcontractors, we also offer a full package where we will represent the contractor and all the contractor’s sub-contractors should this be required offering a full invoice and traceability service between contractor and sub-contractor.

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Construction Contractors

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All contractors working within the construction industry and cis scheme are required to submit a CIS return between the 6th and the 19th of each month, this informs HMRC how much CIS tax you have deducted from your subcontractors and subsequently how much tax is owed to HMRC.

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Keeping up to date with all this is crucial as the penalties for late submissions are high. If it is one day late the penalty is £100 and if it is more than 2 months late a further £200 is payable with further penalties the longer it remains un-submitted and the costs (fines) will only increase until all correct information is supplied. Acting now and putting a good system in place is the only way to deal with your CIS payments and whether you do this yourself or instruct a professional company its id advised that this is taken care of sooner rather than later.

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If we are instructed complete your monthly CIS Returns our payroll team will carry out the following for you:

• Adding and verifying your new sub-contractors;

• Processing of the payment and deduction statements;

• Submission of the monthly CIS Returns;

• Automated email reminders to inform you when your CIS Returns are due;

• Representation in the event of a CIS enquiry from HMRC;

• Correspondence with HMRC on your behalf;

• Unlimited help and advice regarding your CIS Returns.

 

Once we have been instructed and all relevant information has been supplied, your business will be set up on our software to process your CIS Returns each month.

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From here the process is simple, each month you will be requested to supply us with your figures (who’s been paid what) and we will calculate your CIS statements and forward them to you with a summary of what should be paid to HMRC. Once you confirm you happy with everything, we will then submit your CIS return for that month with everybody happy knowing that everything is right.