CIS returns Self Employed Camden Town Islington
CIS is a complicated area that most clients and accountants alike find hard to understand. Basically, you must register as a contractor with the Construction Industry Scheme (CIS) if you pay subcontractors to do construction work or your business doesn’t do construction work but you usually spend more than £1 million a year on construction.
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. However, subcontractors don’t have to register but deductions will be taken at a lower rate if they are registered.
Our CIS dedicated team can help you with registering for CIS and verifying subcontractors. We can also run monthly CIS payroll and submit CIS monthly returns to HMRC. You could be fined up to £3,000 if you can’t show your CIS records when asked by HMRC. You must keep these details for at least 3 years after the end of the tax year they relate to. We can help you by explaining the records and information you must keep like:
• The gross amount of each payment invoiced by subcontractors, excluding VAT
• Any deductions you’ve made from subcontractor payments
• If you made deductions, you must also keep records of the costs of materials the subcontractor invoiced you for