The CIS covers more than what you may typically think of as building and civil engineering work, for example it includes work in demolition, site clearing, repairs and decorating, and installing power systems. The HMRC CIS manual details what work is included within the Construction Industry Scheme.
How do I get a CIS certificate?
To register for the Construction Industry Scheme ( CIS ) you’ll need:
- your legal business name – you can also give a trading name if it’s different to your business name.
- your National Insurance Number.
- the unique taxpayer reference number ( UTR ) for your business.
- your VAT registration number (if you’re VAT registered)
What work qualifies for CIS?
CIS covers all ‘construction’ work– this includes decoration, repairs, site preparation demolition and related work. Both those making payments and those receiving payments need to register. All business to business payments are covered.
Is carpentry under CIS?
Construction Industry Scheme (CIS) The Construction Industry Scheme applies to many trades in the “Building Industry”. If you are a Bricklayer (Builder), Carpenter, Electrician, Plumber, Painter & Decorator, Plasterer, Scaffolder, Roofer or even a Carpet Fitter, this will apply to you.
How does the construction industry Scheme ( CIS ) work?
Construction Industry Scheme (CIS) Under the Construction Industry Scheme ( CIS ), contractors deduct money from a subcontractor ’s payments and pass it to HM Revenue and Customs ( HMRC ). The deductions count as advance payments towards the subcontractor’s tax and National Insurance. Contractors must register for the scheme.
What do you have to do as a cis?
You must register as a contractor with the Construction Industry Scheme ( CIS) if: your business does not do construction work but you have spent more than £3 million on construction in the 12 months since you made your first payment You may be a sole trader, in a partnership or own a limited company.
What do you need to do as a construction industry scheme?
You must check if you should employ the person instead of subcontracting the work. You may get a penalty if they should be an employee instead. Check with HM Revenue and Customs (HMRC) that your subcontractors are registered with CIS. When you pay subcontractors, you’ll usually need to make deductions from their payments and pay the money to HMRC.
How does HMRC work with a cis contractor?
Now, a CIS contractor pays a portion of their subcontractors’ wages directly to HMRC before it reaches the subcontractors. Effectively, the CIS contractor acts as a tax collector for HMRC, they become part of the administrative process. These payments are then put towards subcontractors’ income tax and National Insurance payments.
