Mansell & Co
Chartered Certified Accountants
Construction Industry Scheme (CIS)
CIS for Subcontractors
If you are working in the Construction Industry Scheme and have tax deducted directly from your sales invoices, Mansell & Co can work out your annual CIS repayment and liaise with H M Revenue and Customs for the refund to be processed.
We will maximise the available tax repayment within the HMRC rules and file online which brings faster issuing of repayments. We only require settlement of our fees on issue of the repayment - our fees are normally settled by deduction from the CIS repayment.
CIS Administration for Contractors
The Construction Industry Scheme rules put great pressure on contractors to clarify the status of people working for them, i.e. employed or self-employed, and involve the submission of a monthly return to HM Revenue & Customs.
The service in more detail
Processing the gross payment each pay period for each sub-contractor, calculating the correct net payment based on whether the sub-contractor has registered with HM Revenue & Customs, who will confirm which tax rate to apply.
Verification of new sub-contractors with HM Revenue & Customs where required.
Completion and submission of the monthly CIS300 return to HM Revenue & Customs by the 19th of the month, following approval by the contractor.
Production of the sub-contractor statements each pay period.
Key CIS requirements are:
- The responsibility falls on the contractor to verify the deduction status of sub-contractors
- Providing sub-contractors with written statements each pay period.
- Identification of payment status from 3 possible options.
- Application of a 30% tax rate for sub-contractors who cannot be verified.
- Monthly CIS300 return to HM Revenue & Customs, which needs to be submitted by the 19th of each month. Penalties for late submission of at least £100 per return.
- Penalties for late submission or getting things wrong can be oppressive. This can be up to £3,000 per return, which is potentially up to £36,000 per annum!
Verification and the monthly filing process puts pressure on contractors to ensure the scheme is administered correctly and that returns are filed on time and penalties are avoided. By using our CIS administration service working to the new CIS rules, this administration burden and pressure on the contractor is removed.
The service operates along similar lines to our payroll service, where the contractors provide us with the sub-contractor invoices, statements or time sheets each pay period and we then administer the scheme on behalf of the contractor.