Rules you must follow
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You must register for CIS before you take on your first subcontractor.
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You must check if you should employ the person instead of subcontracting the work. You may get a penalty if they should be an employee instead.
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Check with HM Revenue and Customs (HMRC) that your subcontractors are registered with CIS.
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You'll need to file monthly returns and keep full CIS records - you may get a penalty if you don't.
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You must let HMRC know about any changes to your business.
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When you pay subcontractors, you'll usually need to make deductions from their payments and pay the money to HMRC.
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- Deductions count as advance payments towards the subcontractor's tax and National Insurance bill.
Overview
You must register as a contractor with the Construction Industry Scheme (CIS) if:
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You pay subcontractors to do construction work;
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Your business doesn't do construction work but you usually spend more than £1 million a year on construction.
You may be a sole trader, in a partnership or own a limited company. If you're not sure if you need to register, check who is covered by CIS.
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