Construction Industry Scheme

[kevinjohnsonmbe]

I've had a scan on the website: https://www.gov.uk/what-you-must-do-as-a-cis-contractor/who-is-covered-by-cis

 

I'll have a go at trying the CIS helpline tomorrow to confirm but can anyone help with previous experience?

 

So it's a site tree clearance ready for demo and reconstruction. I'm CIS registered and kind of expecting the developer to make deductions at source but do I have to do the same for the guys subbing in for me?

 

The webpage states that:

 

"Construction work not covered by CIS

There are also certain jobs that are exempt from the scheme, including:

 

architecture and surveying

scaffolding hire (with no labour)

carpet fitting

delivering materials

work on construction sites that is clearly not construction, eg running a canteen or site facilities"

 

Is it plausible to suggest that tree work might be exempt from CIS since it's not construction? I'm sure I've seen this point discussed previously with the outcome that tree clearance prior to demo / building WAS treated as CIS.

 

Any pointers or experience appreciated.

[Fenland]

Its a bit of scheme is the CIS...Assuming the work you describe falls under the CIS banner (I'll leave others to decide) then two points:

 

1) The main contractor will deduct a percentage form the amount you receive (usually 20%) which you can subsequently reclaim or offset at year end. The main contractor will need to verify your CIS status if not already done so.

 

2) Any subbies working for you on CIS sites will also need to be CIS registered and you will need to be registered as a main contractor. You will then be responsible for verifying them as bona fida, stopping the appropriate amount from them and paying it over to HMRC. You will need to provide them with a CIS payment certificate for their records.

 

CIS deductions can only me made from labour elements of an invoice i.e. not materials, plant hire, skips etc etc.

 

Hope that helps, feel free to PM me

[kevinjohnsonmbe]

Thanks Fen!

 

Seems a ball ache.

 

I'm just wondering if it's even worth trying the helpline with the "tree clearance can't possibly be classed as construction" angle...

 

I'll give it a punt and see what comes of it.

[aspenarb]

Have a flick through the Bible https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366129/cis340.pdf.

 

Page 69 Operations excluded from the scheme .

 

Convincing an accounts department that you are exempt is the hardest part but forestry operations are in some cases exempt.

 

Bob

[kevinjohnsonmbe]

Got it, thanks Bob, will give it a punt with the main contractor!

 

[aspenarb]

Got it, thanks Bob, will give it a punt with the main contractor!

 

 

Kevin if you think you may be doing more in this sector and you are bang up to date with HMRC you can enter into the gross payment scheme. You will need to apply and be doing north of 30k per annum .

 

 

A bit of gumph on it Obtaining Gross CIS Payment Status

 

Bob

[jltree]

I am in the scheme and have looked to get out of it but since I do site clearance then the company I work for deducts it. I asked them to do it a different way due to work we do . They replied either accept it or don't work for them... Don't matter if its tree clearance, its how they work....

[kevinjohnsonmbe]

I am in the scheme and have looked to get out of it but since I do site clearance then the company I work for deducts it. I asked them to do it a different way due to work we do . They replied either accept it or don't work for them... Don't matter if its tree clearance, its how they work....

 

 

Hearing you!

 

I'm not "dependant" on site work, it comes along once in a while. Last time was a smaller scale scenario, 20ish houses on a plot. Developer didn't mention CIS and I didn't raise the issue.

 

Been invited to quote for a pending development but if all gets too "grabby", "that's how we do it", "take it or leave it" type scenario, I'll be jogging on. The paperwork, hassle, waiting for payment etc, compared to domestic customers who are generally nice, appreciative and often become ongoing acquaintances = no comparison really.

[kevinjohnsonmbe]

Just trying to get through to a "talking human" (and that's debatable) on the CIS Helpline is enough of a hassle!

 

:angry:

[AA Teccie (Paul)]

Hi Kevin, I hope you're well.

 

Having just looked into this matter with an AA member I'm pretty sure what you are doing, i.e. 'site clearance' as part of site preparation (for construction), is included in CIS and would affect any and all assisting you with such.

 

Forestry management, AKA "good arboricultural management" , including tree safety works, would be exempted from CIS however.

 

Not sure as to the intricacies of the CIS workings I'm afraid as never been there.

 

Good luck..

Paul