The Construction Industry Scheme (CIS) is a tax deduction scheme which involves tax being deducted at source from payments which relate to construction work. The deductions count as advance payments towards the subcontractor’s tax.
Contractors/workers within the scheme must register using their UTR number (unique tax ref no), NI number and/or business name. This enables HMRC to determine the CIS status of their tax i.e. gross (no deductions), standard (20%) or higher rate (30%).
In terms of running the payroll we;
– Process payments for materials, labour and VAT
– Verify sub-contractors through HMRC
– Submit the CIS return