The experienced team at Dyer and co can easily explain the many different schemes that you or your business may benefit from. They can help, support and advice you in a straightforward and simple way to make the accounts and finances area of your business run as smoothly as possible.
CIS – meaning ‘Construction Industry Scheme’ is a scheme that sets out the rules for how payments to subcontractors must be handled by contractors in the construction industry.
What is CIS Gross payment?
Under the CIS scheme, all payments made from contractors to subcontractors must take account of the subcontractor’s tax status as determined by HM Revenue and Customs / HMRC.
However, if you are a subcontractor, you can apply for CIS gross payment.
How to get cis gross payment?
Subcontractors can apply to be paid gross – with no deductions taken from their payments. To do this, subcontractors will need to show HMRC that they meet certain qualifying conditions. To qualify You’ll need to show that:
- You’ve paid your tax and National Insurance on time in the past
- Your business does construction work (or provides labour for it) in the UK
- Your business is run through a bank account
How to register for CIS gross payment
To register for CIS gross payment, you will need to determine if your business operates as a sole trader, a limited company or partnership or if your business operates abroad.
Each different type of business will need to fill out their specialized form within the CIS registration, found on the HMRC.gov website. You will need:
- Your legal business
- Your National Insurance Number
- The unique taxpayer reference number (UTR) for your business
- Your VAT registration number (if you’re VAT registered)
The benefits of registering for the CIS
When you register for HMRC CIS scheme, you, as a subcontractor under CIS will be deducted at a standard rate of 20% when paid by a contractor. If you aren’t registered for CIS you will be deducted at a rate of 30%. If you have registered for CIS you are also able to apply for the CIS gross payment status, which will mean the contractor wont take any deductions from your payments and you’ll pay tax and national insurance at the end of the tax year.
What the CIS scheme covers
The scheme covers all construction work carried out in the UK, including jobs such as: site preparation, alterations, dismantling, construction, repairs, decorating, demolition. The CIS scheme doesn’t cover work that is carried out outside of the UK.
Dyer and co offer a responsive and efficient team who are happy to help with any queries you may have regarding the CIS scheme or any other government schemes featured on the website.
Don’t hesitate to contact using the contact us tab and sending a message, or call +4402083080777.