Construction Industry Scheme (CIS)

At FSL Accountancy, we are dedicated to simplifying the complex. Providing you with innovative yet simple bespoke accounting solutions to your complicated accounting needs, we ensure your accounts are done on time, every time. 

  • The Construction Industry Scheme (CIS) governs the tax treatment of subcontractors working in construction.
  • Contractors must follow specific payment rules when engaging subcontractors under the CIS.
  • The scheme requires contractors to withhold tax from payments to subcontractors and submit monthly returns to HMRC.
  • Subcontractors must register with HMRC and keep the tax authorities updated on any changes to their business.
  • Compliance with the CIS is critical to avoiding penalties and maintaining financial health for both contractors and subcontractors.

What is CIS?

The Construction Industry Scheme (CIS) was created by HM Revenue & Customs (HMRC) to combat tax evasion in the construction industry. It is specifically designed to address the unique challenges of a large number of self-employed workers. CIS rules apply to all payments made by contractors to subcontractors under a construction contract, and noncompliance can result in costly penalties.

The Construction Industry Scheme (CIS) was created by HM Revenue & Customs (HMRC) to combat tax evasion in the construction industry. It is specifically designed to address the unique challenges of a large number of self-employed workers. CIS rules apply to all payments made by contractors to subcontractors under a construction contract, and noncompliance can result in costly penalties.

CIS Accountants

As expert CIS accountants, we can help your business comply with the complex CIS tax rules. Whether you’re a contractor or a subcontractor, we understand the burden the scheme can place on your business. By appointing us as your trusted CIS accountants, you can focus on growing your business while we handle the paperwork. Our services include various tasks for our contractor and subcontractor clients, saving you time and hassle.  

Our services for subcontractors

  • Determine your employment status as either employed or self-employed.
  • If self-employed, we’ll register you as a sub-contractor under the CIS scheme with HMRC.
  • Manage and organise your business records to stay compliant with regulations.
  • Prepare your end-of-year self-assessment tax return and calculate your tax liability or refund.

Our services for contractors

  • We register you with HMRC as a contractor and verify your subcontractors.
  • Ensure correct payment to your subcontractors within the CIS scheme.
  • Prepare and submit monthly CIS returns to HMRC and supply annual payment and deduction statements to your subcontractors.
  • Keep your records in good order and submit monthly returns to HMRC to avoid penalties.
  • As a contractor, you have specific obligations under the scheme, including registering with HMRC, checking subcontractor registration, deducting tax, and submitting monthly statements.
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FSL Accountancy Limited
Unit 2, Regents Place
11 Hastings Street, Luton
LU1 5BE

Phone: 01582 806111
Email: contact@fslaccountancy.co.uk

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