Most construction businesses will be categorised as both a contractor and sub-contractor and awareness of the differing obligations of each role is essential.

 

Contractors and sub-contractors who fail to comply with the CIS guidance outlined by HMRC are vulnerable to:

 

  • penalties
  • interest
  • tax
  • liabilities
  • wasted management time in rectifying errors and in responding to compliance checks if HMRC discover inaccuracies
  • revocation of gross payment status
  • HMRC compliance checks

 

Contractors can be penalised for the following:

 

  • late returns
  • late payments
  • incorrect returns
  • deliberately providing incorrect information
  • failing to produce records when asked to
  • failing to give pay deduction statements to subcontractors

 

 

The penalty depends on the frequency and severity of the offence. Penalties can be reduced through unprompted and prompted disclosures.

 

Hover over the images below to find out more about CIS Compliance

 

CIS COMPLIANCE FOR CONTRACTORS

Contractors, both mainstream and deemed, operating as a sole trader, as a partnership, or a limited company, must register as a contractor with HM Revenue and Customs (HMRC) under the Construction Industry Scheme (CIS) if;

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CIS COMPLIANCE FOR SUB CONTRACTORS

To achieve compliance sub-contractors must:

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THE CIS AND EXEMPTIONS

The two most commonly encountered exemptions from the CIS are:

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ONSHORE EMPLOYMENT INTERMEDIARIES: WORKING TOGETHER TO ENSURE TAX COMPLIANCE

Government introduced the Onshore Employment Intermediaries (OEI) legislation in April 2014 to regulate the use of intermediaries that disguised their workers’ employment status as self-employed

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WHAT WILL HAPPEN IF CONTRACTORS AND SUB-CONTRACTORS ARE NON-COMPLIANT WITH CIS?

Most construction businesses will be categorised as both a contractor and sub-contractor and awareness of the differing obligations of each role is essential.

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"WE ENSURE that both contractors and sub-contractors are fully compliant with the Construction Industry Scheme"

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