Construction Industry Scheme (CIS)
Better financial visibility brings better results
How we can help you manage CIS
We have helped many companies with the Construction Industry Scheme (CIS).
Here at CJ Bookkeeping can:
- Help simplify the process right from taking on a subcontractor to ensure the relevant data is captured at the right time
- Make sure the correct CIS tax treatment is calculated so you can check against the subcontractor invoice – no more relying on the subcontractor to get it right
- Keep on top of all the compliance deadlines so nothing gets missed and no penalties get issued
The CJ Bookkeeping team have many years of experience dealing with the construction industry scheme for clients nationwide and can manage the entire process for you.
Releasing the burden
Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC).
As a company, operating as a contractor, there are significant compliance obligations that must be completed monthly, and this can be a cumbersome task if this involves many subcontractors.
CJ Bookkeeping handles this whole process from first verifying subcontractors to determine their tax treatment to submitting the monthly CIS returns and advising contractors of the payments required to subcontractors, HMRC and the relevant deadlines.
This means the contractor can get on with the consuming task of running a construction site and managing the work progress without having to worry about all the surrounding compliance work that is involved.
See our case study from Greencore Construction as to how we helped simplify their CIS process.
For help with CIS
CJ Bookkeeping Ltd. helping you with your Construction Industry Scheme payments
Bringing business into focus
Other Services
Bookkeeping
We constantly monitor and review clients’ accounts, ensuring business owners have a live, accurate financial picture so business-critical decisions can be made.
Payroll Services
We work directly with clients to manage the entire payroll process, but also with accountants to enable them to offer this service to their clients, within their own branding.
Got a question?
Frequently Asked Questions
What work is covered by CIS?
CIS covers most construction work to:
- a permanent or temporary building or structure
- civil engineering work like roads and bridges
There are of course exceptions, so do get in touch for further help and advice.
How do I register as a Contractor?
To register as a contractor, you need to follow the HMRC process for setting up as a new employer.
When done, you will receive a letter from HM Revenue and Customs (HMRC) with the information you need to start working as a Construction Industry Scheme (CIS) contractor.
Get in touch and CJ Bookkeeping can assist you with this setup process to ensure the first compliance task is captured at the right time.
How do I register as a subcontractor?
If you’re a sole trader and you already have a UTR, you can register for CIS online. You’ll need the Government Gateway user ID and password you used when you registered for Self-Assessment (or another government service).
If you do not have a UTR, register as a new business for Self Assessment and choose ‘working as a subcontractor’ when prompted. You’ll be registered for Self Assessment and CIS at the same time.
How does a Contractor calculate what CIS tax to deduct from a Subcontractor?
Contractors are required to verify subcontractors with HMRC and this verification provides the CIS tax rate that the subcontractor should be deducted at (rates are 30%, 20%, or 0%).
This CIS tax rate is applied to the labour element (and non-qualifying materials) stated on the invoice provided by the subcontractor.
What are ‘non-qualifying materials’?
Plant hire – this only qualifies as a qualifying material if the subcontractor has incurred the cost (ie paid a 3rd party for the plant hire). If the plant hire concerned is owned directly by the subcontractor then it becomes a non-qualifying material.
Fuel – this is treated as qualifying CIS materials if the fuel was used in plant & machinery. Fuel relating to travel is therefore a non-qualifying material.
Accommodation costs – this is a non-qualifying CIS material. Any accommodation charges would be included within the labour charge and would incur CIS tax deductions there.
For more questions, Please contact
For a bookkeeper
who will bring you improved LIVE financial visibility and keep you aware of what’s happening in your business,
call CJ Bookkeeping Ltd.