Construction Industry Scheme -CIS

[benedmonds]

We been asked if we a signed up with the CIS - Construction Industry Scheme a few times and always got round it, we work for a few developers who take off 20% tax and I'm fine with that.

 

A new client says we have to register.. A quick read of the HMRC site looks like we should be registered, but obligations include monthly returns to the HMRC.

 

Has anyone registered and is it a ball ache..

[Mark Bolam]

I thought it had been scrapped and replaced with CSCS?

 

I registered and got a CIS card years ago for a couple of site jobs, never had anything to do with monthly returns to HMRC, just got deducted 20% at source (so always bumped the price up 30% ).

[woody paul]

I registered a couple of years ago now just rang HMRC up did it all over phone no problems all more for work for builders because nothing I have ever done for them is straight forward.

[Fenland]

We are registered as both Main contractors and sub-contractor under the CIS scheme.

 

Do you have any employee's or do you use self employed sub-contractors?

 

PM me if you want

[benedmonds]

We are registered as both Main contractors and sub-contractor under the CIS scheme.

 

Do you have any employee's or do you use self employed sub-contractors?

 

We have employees on the books and use the occasional freelancer. It just looks like a lot of paper work.. Even if you are not doing CIS works you have to fill in a monthly nil return..

 

HM Revenue & Customs: Contractor registration and obligations

 

Submitting monthly returns

Each month you'll need to send a monthly return to HMRC. This tells HMRC about the payments you've made to all your subcontractors - and any deductions you've made from them. If you haven't made any payments, you'll have to make a 'nil return' to let HMRC know.

[Fenland]

We have employees on the books and use the occasional freelancer. It just looks like a lot of paper work.. Even if you are not doing CIS works you have to fill in a monthly nil return..

 

HM Revenue & Customs: Contractor registration and obligations

 

Submitting monthly returns

Each month you'll need to send a monthly return to HMRC. This tells HMRC about the payments you've made to all your subcontractors - and any deductions you've made from them. If you haven't made any payments, you'll have to make a 'nil return' to let HMRC know.

 

Thats correct- once you register as a main contractor i.e. paying subbies (who will also now have to be CIS registered if the work falls under the scope) then you will have to file monthly returns regardless

 

If you only register as a CIS sub-contractor then no monthly returns needed.

 

Employee's do not fall under CIS payment scheme (although the Co will still be subject to stoppages).

 

If you dont want the extra aggro could you only register as a sub contractor

?

[benedmonds]

If you dont want the extra aggro could you only register as a sub contractor

?

 

Cheers, That looks like it will work.

[ScottF]

I've looked into this before and arbs are not subject to the CIS regulations for general works, only for site clearance works. CISR14200 - The Scheme: construction operations: landscaping

[finky]

CSCS is what you need to get on site to earn money....CIS is the bit you give to osbourne and his cronies 👎

 

 

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[WorcsWuss]

CSCS is what you need to get on site to earn money....CIS is the bit you give to osbourne and his cronies 👎

 

 

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CIS (in it's first incarnation) was a Gordon Brown invention, the robbing basket decided that too many people working in construction must be getting paid cash in hand and avoiding tax and he needed the money for Prescott's Jags.

So he passed responsibility for ensuring individuals pay their tax from HMRC to ordinary building contractors. HMRC find it easier to go after someone with a registered office, and it would be a shame for them to have to work for their money.....

It was simplified a little in late 2010, but not much!

 

And CSCS is no better, it's another tax on work, this time paid to the CITB, but dressed up by giving you a card!