THE CONSTRUCTION INDUSTRY SCHEME (CIS)
In April 2007 'New CIS' came into being.
Contractors in the construction industry are obliged to verify the tax status of their sub-contractors and deduct tax from those with 'net payment' status.
They must also provide them with monthly statements and send monthly returns to hmrc. Under exceptional circumstances they may be able to submit quarterly.
Sub-contractors must register under the scheme, and provide their Unique Tax Reference and NI number to any main contractor they work for. Failure to do so will result in higher tax deductions being made.
Administration of New CIS
Administration of the scheme is burdensome, and there are automatic penalties for non-compliance - £100 for a late monthly return, and up to a possible £3,000 for failure to provide statements.
With several years' experience in the construction industry, I can provide a complete service to both contractors and sub-contractors, even if they undertake their own bookkeeping. CIS can easily be extracted from other accounting activities. I can help with:
- registration onto the scheme
- verification of sub-contractors
- calculation of tax
- produce monthly statements
- submit monthly returns to hmrc
- maintain invoice and payment records
- collate and calculate liability for use in conjunction with end-of-year tax returns
For further information, or to discuss your requirements, call 01384 402281 and ask for Christine, or contact me via the above link.
