The Construction Industry Scheme (CIS)

The UK Construction Industry Scheme (CIS) is a tax scheme that applies to contractors and subcontractors who work in the construction industry. The scheme aims to ensure that the correct amount of tax and national insurance contributions are paid by those who are involved in construction work Under the CIS, contractors register with HM Revenue and Customs (HMRC) and deduct money from the payments they make to subcontractors. The deductions count as advance payments towards the subcontractor’s tax and national insurance liabilities.

Subcontractors do not have to register for the CIS, but they can benefit from a much lower lower deduction rate if they do. Subcontractors who are registered for the CIS have 20% deducted from their payments, while those who are not have 30% deducted. Subcontractors can also claim back any overpaid tax or deductions at the end of the tax year by filing a self-assessment tax return, that O’Connor & Co can also assist with.

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What are the benefits of O’Connor & Co helping me register for the CIS?

The CIS is a complex scheme that requires contractors and subcontractors to comply with various rules and deadlines - failure to do so can result in penalties and interest charges from HMRC. Therefore, it is important for anyone who works in the construction industry to employ a knowledgable accountant who can take supervise the administration. O’Connor & Co have a wealth of expertise in the CIS scheme and can assist your business in making the very most of the reduced deductions available through the CIS.

From your very fist construction contract, we can help you obtain your Unique Taxpayer Reference (UTR) number and set up an HMRC Online account, which are required for registering for the CIS.
O’Connor & Co will complete all the necessary administration for the online CIS registration, as well as applying for gross payment status if you meet the criteria (receiving payment without deductions).
O’Connor & Co ensure you comply with the CIS rules and deadlines, such as verifying your identity with contractors, issuing invoices with your UTR number and CIS status, and reporting any changes to to HMRC.
As your accountant, we track income and expenses for each project and prepare self-assessment tax returns at the end of the year. This can be crucial in claiming back any overpaid tax or deductions under the CIS.

With the support and expertise of O’Connor & Co, you can save significant money by taking part in the CIS. We also provide expert guidance and support on all aspects of running a business in the UK and ensure that you meet your obligations and responsibilities to HMRC. For more information, select one of our additional services below: