CIS Scheme

[Mac McLennan]

I have been asked to carry out tree work for a larger tree firm in my area. The accountant has asked me if I am in the CIS Scheme.......so I told him no.

 

I have looked on the revenue site and read up on it ....but to be truthful I find it all a bit confusing.

 

Can anyone put this in plain english for me.

[Arborist]

I thought the CIS scheme was for the construction industry

[Mac McLennan]

So did I?????

[Arborist]

I think that if your company carried out work on contruction sites then you would need a cis card, I don't know if you would need one if it was just a one off job.

I think it was to stamp out cash in hand and making sure all monies paid was declared to HMCAE.

[Mac McLennan]

I'm sure this would become a regular thing.....Maybe even two days a week.

[treediver]

If the company employing you as a subcontractor are part or the CIS scheme then you'll have to register with the tax office for CIS status. The card they issued has been scraped now but if you dont register then normally the company cant pay you until youve given them your details.

If you work for a large company on any constuction site "most of the time" they will want your CIS info.

[nailer]

G 7REE

 

This link explains the scheme.

 

http://www.hmrc.gov.uk/new-cis/cis340.pdf'>http://www.hmrc.gov.uk/new-cis/cis340.pdf

 

What you need is a Company Unique Tax Reference (UTR).

 

This will allow you to avoid 30% deductions from your payments. You will still be deducted 20% but you are able to claim this back at the end of your year.

 

Another way is to offset the deductions each month against your employees` PAYE / NIC payments. This way you get the deductions back monthly rather than annually.

 

CIS Helpline No. 0845 366 7899

or http://www.hmrc.gov.uk/new-cis

[Mac McLennan]

Names Mac...Cheers fellas. The accountant is right enough then.

[nailer]

Mac

 

it may appear confusing but will be well worth your while. The helpline is very good.

[skyhuck]

I have a letter from the tax man saying my work is agricultural and exempt from the CIS scheme,if i get asked i just send a copy of the letter,works for me.