CIS PAYMENT QUESTION

[Chipperclown]

Hi All,

 

I am just about to change accountants and today at a meeting with my new accountant I was asked me if I make CIS deductions. I don't and never have. I am a limited company that provides tree surgery to residential customers. I have zero employees, just use subcontractors. Could anyone steer me in the right direction in terms of the rules etc? Thanks.

[AA Teccie (Paul)]

Think you need to educate your accountant.

 

CIS is an abbreviation for 'Construction Industry Scheme' so if you only (currently) work for residential customers = not relevant / not applicable.

 

Cheers,Paul

 

PS Lots of previous threads on this subject, but where it is applicable, generally, poss take a look at https://www.gov.uk/what-is-the-construction-industry-scheme

 

Edited April 11, 2019 by AA Teccie (Paul)
typo

[ChunksBigBro]

It is my understanding, aslong as your work is not undertaken in the preperation stage of a construction job, you and your work is exempt. But the minute you cut or prine a tree to make way for construction / building work you need to register and deduct cis from your subbies

[Rough Hewn]

Phone hmrc.
If you don't ever do construction site clearance before work begins or during works, I don't think you'll need it.
Unless you are contracting for a construction firm who do everything CIS.
I phoned hmrc when I had CIS issues and they were very helpful and explained it simply.
[emoji106]

[topchippyles]

Not required as you stated you only do private work 

[Inoff the Red]

7 hours ago, ChunksBigBro said:

It is my understanding, aslong as your work is not undertaken in the preperation stage of a construction job, you and your work is exempt. But the minute you cut or prine a tree to make way for construction / building work you need to register and deduct cis from your subbies

Correct. See clause 5 in Appendix A to the HMRC Guide CIS 340 - A Guide for contractors and subcontractors.

 

But as the OP stated his company only did work for residential customers the CIS question is unlikely to be relevant.

 

In fairness to the new accountant it was a sensible question to ask and it seemed from the original post that the accountant asked whether the OP was making CIS deductions, not that he SHOULD be making CIS deductions.

If you are instructing an accountant to prepare tax returns/accounts then, imho, it is an obvious question to ask because it is an added complication that could have an impact on his work load.

[Chipperclown]

Thanks all, I have contacted my new accountant so hopefully put this matter to bed.