As a contractor, when you start working with a subcontractor for the first time, you will need to verify them with HM Revenue and customs before you pay their first Invoice. Verifying is the process of checking if your subcontractor has registered under the Construction Industry Scheme (CIS) and will let know you how much CIS tax you need to deduct from the subcontractor.
If you are a contractor within the construction industry, then you will have to submit a CIS Return to HMRC before the 19th of each month. The return gives details of every payment you made to subcontractors under CIS during the last tax month. The penalties for missed or late submissions are high. If it is one day late the penalty is £100 and if it is more than two months late a further £200 is payable with further penalties the longer it remains un-submitted. We will help you keep on top of everything, so you don’t have to face this worry.
As part of our CIS service for Contractors we will: