The Construction Industry Scheme (CIS) is a vital part of UK taxation, specifically designed to ensure tax compliance within the construction sector. Under CIS, contractors deduct money from subcontractor payments and pass it on to HMRC. These deductions count as advance payments towards the subcontractor’s tax and National Insurance.
Key Points to Keep in Mind:
Who does CIS apply to?
Contractors and subcontractors working in the construction industry, including individuals and companies.
What are the deduction rates?
Standard rate is 20%, while subcontractors without proper registration face a higher rate of 30%.
Filing requirements:
Contractors must file monthly returns and ensure accurate reporting of all payments to subcontractors.
CIS for limited companies:
Even incorporated businesses may be affected by CIS, requiring careful management of cash flow and compliance.
At BEEZ Outsourcing, we specialize in handling CIS calculations and submissions, ensuring your business remains compliant while optimizing your cash flow. Need help with CIS or any other tax-related matters? Let’s connect!
Need help with your confirmation statement? Get in touch today!
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- www.beezoutsourcing.com
