What is the Construction Industry Scheme (CIS)?
If you’re a company, partnership, or self-employed individual working in the building or construction industry, you may need to pay tax under the Construction Industry Scheme (CIS).
Under CIS, contractors make payments to subcontractors (not employees, as they are covered by PAYE) and deduct a portion of the payment for tax. These deductions are then passed directly to HMRC, helping ensure compliance and reduce tax liability issues.
Our expert accountants can guide you through the process, handle CIS deductions, and ensure your business stays fully compliant.
Talk to one of our accountants today on 0330 133 0688 or request a call back.
Do I Need to Register for CIS?
If your business pays subcontractors for construction work, you must register with HMRC as a contractor under the Construction Industry Scheme (CIS). Even if your business doesn’t carry out construction work directly but spends over £1 million on construction over a three-year period, registration is required.
Subcontractors who work for a contractor must also register with HMRC to receive gross payments. To qualify, a subcontractor must meet three essential tests:
1. Business Test – Your business must be considered construction-related work, such as site preparation, demolition, decorating, or similar activities.
2. Turnover Test – Sole traders must have a turnover of at least £30,000, each partner in a partnership must meet the same threshold, and the partnership as a whole must meet £100,000.
3. Compliance Test – All tax documentation and payments must be accurate and submitted on time.
Ensure your CIS registration is in order to avoid penalties, streamline payments, and maintain compliance with HMRC.
Call us on 0330 133 0688 to get expert advice or assistance with CIS registration today.
How Can K3 Accountants Help With CIS?
We take the stress out of the Construction Industry Scheme so you can focus on running your business. Our services include:
- Registering you with HMRC as a contractor or subcontractor
- Helping you avoid penalties due to late or incorrect returns
- Keeping your accounts and records accurate and compliant
- Ensuring payments are made correctly within the CIS
- Keeping you up to date with any changes to CIS regulations
- Supplying deduction statements to your subcontractors
- And much more
As a contractor in the construction industry, you have regulatory obligations to meet, but your time is valuable. Let K3 Accountants handle the admin so you can concentrate on growing your business.
Call one of our expert accountants today on 0330 133 0688 or request a call back. Ready to sign up? Click the button below to get started.
