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.

13 Balmoral Road

Willesden Green

London

NW25DX

Company Number

11457978