It’s important to know which type of work falls under the Construction Industry Scheme.
Some times it might not be obvious but all the same good to know what is what.
How to Deal with Sub Contractor payments
Under the scheme, all payments made from contractors to subcontractors must take account of the subcontractor’s tax status as determined by HM Revenue & Customs. This may require the contractor to make a deduction usually 20% or 30% if unregistrred , which they then pay to us, from that part of the payment that does not represent the cost of materials incurred by the subcontractor.
The CIS scheme covers all construction work carried out in the United Kingdom (UK), including jobs such as:
- Site preparation
- Decorating and Demolition
- General Repairs and Maintenance.
- Building and construction.
The UK includes United Kingdom territorial waters up to the 12-mile limit.
The scheme does not apply to construction work carried on outside the UK. However, a business based outside the UK and
carrying out construction work within the UK is within the scheme and must register accordingly.
If you need to speak to a CIS Adviser, please contact us on 0208 679 4690 or need more information about the CIS scheme , please Visit our website.
Categories: Construction Industry Scheme, Self Employed, Taxes
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