Construction Industry Scheme (CIS) Accountants

The Construction Industry Scheme (CIS) is a HMRC system whereby contractors deduct money from their subcontractors and pay it direct to HMRC. These deductions count as advance payments towards the subcontractor’s tax and national insurance payments. The system is unique to the construction industry and its operation can cause complications for those who are unfamiliar how it works. Griffin have worked with a wide range of clients in the construction industry and advise widely on CIS treatment as well as undertaking returns on behalf of our clients.

Contractors

If you employ subcontractors then you are what is known as a ‘main contractor’ for CIS purposes. This means that your business will be obligated to register for CIS and verify any subcontractors you pay with HMRC. Verifying a subcontractor essentially checks whether they are already registered with HMRC for CIS and tells you what rate to deduct CIS from them at. Any payments you then make to your subcontractors will then need to be made less any CIS due, which will be paid over to HMRC instead.

Subcontractors

If you work as a subcontractor then the main contractor you work for will deduct CIS tax from payments made to you. These deductions count as advance payment towards your tax and National Insurance and will be taken off any amounts owed when you do your tax return. If your business turnover is over a certain amount, and you have previously paid your taxes on time, then you can apply for gross payment status so that the main contractor no longer takes CIS from you. Instead, you will pay any tax due at the end of the year when your business does a tax return.

Year end accounts and audit

As well as CIS, Griffin have an in depth knowledge of the construction industry and are able to help with year end accounts, audit and tax. Please see here for more details.