Construction Industry Scheme

The CIS applies to applies to contractors who pay subcontractors to do construction work or if your business does not do any construction but spends more then 1 million a year on construction.

At Emulous Accounting, we specialize in CIS and provide accountancy and tax return services for a fixed fee without any charges. 

If you work within the construction industry scheme whether through a limited company or as self-employed you must fulfill certain requirements to HMRC, and that is where Emulous Accounting helps fulfill your obligations.

CIS for the self-employed

A self-employed CIS subcontractor is required to register with HMRC. Your CIS contractor in turn checks your registration with HMRC and when verified is required to deduct 20% basic rate tax from your invoices to pay over to HMRC. If you are not registered with HMRC your contractor must deduct 30% of your invoices.

A CIS contractor is required to submit a annual tax return to HMRC by 31 January following the end of the tax year. By way of example if a CIS sole trader earned income between 6 April 2018 and 5 April 2019 the tax return must be submitted by 31 January 2020.

At Emulous Accounting, we can help CIS contractors by:

  • Registering you as a CIS contractor.
  • Prepare CIS accounts.
  • Calculate your taxable profits.
  • Provide advice on claiming all legitimate expenses to optimize tax savings.
  • Arrange for any refunds to be paid directly into your bank account or confirm any tax payable by you. 

CIS for limited companies

Under the CIS scheme if you are a contractor you will be required to deduct 20% from the payments made to subcontractors, and then submit returns to HMRC.

Additionally, as a director of a company falling within the construction industry scheme, you will have certain obligations towards HMRC and companies house. These requirements are substantially more burdensome than a CIS sole trader and include the following:

  • Submission of annual confirmation statements.
  • Monthly or quarterly VAT returns if you are registered for VAT.
  • Weekly/monthly or quarterly RTI returns for employee salaries.
  • Monthly CIS returns if you hire a CIS subcontractor.
  • Submission of annual company accounts with HMRC and Companies House.
  • Submission of the annual corporation tax return with confirmation of any requirements to make a corporation tax payment.

At Emulous Accounting we are specialists in the above and can ensure the above obligations are met in a timely fashion and all obligations are met.

For more detailed information and to arrange a free consultation, please contact us.

Contact Us

13 Balmoral Road

Willesden Green

London

NW25DX

Company Number

11457978