Construction Industry Scheme
Construction Industry Scheme is a set of special rules that define how the contractor will handle the payments made to subcontractors for construction work. It is a way to increase revenue collected from the industry. Contractors are required to subtract money from the subcontractor’s payment and pay it to HMRC as tax. CIS applies to you if your business spends more than £1 million in three years. If you take a job and contract it to someone else, you are working as a contractor and if someone assigns a job to you then you will be working as a subcontractor. At Hayes Accountants, our chartered accountants will assist you in all the processes for Construct Industry Scheme with their best knowledge in the field.
What CIS Covers?
The construction activity that is included in the Construction Industry Scheme is the following:
- Site preparation
- Dismantling & demolition
- Construction work
- Modification, repairing & decoration
- Installation of heat, light, power, water and ventilation structure