FAQ
How do I check my CIS status?
If you’re just beginning work as a contractor and need to check that you’re registered for CIS with HMRC, just call their CIS helpline on 0300 2003210. We’d advise calling early in the morning, around 8 when the lines open, as this saves waiting in a queue for ages.
Who is exempt from CIS scheme?
CIS doesn’t apply to delivery of materials to site, architecture or survey work, scaffolding hire without labour or fitting of carpets. It also doesn’t apply to facilities on site that are not construction, such as catering. For contractors, CIS also doesn’t apply if you are being paid by a charity or trust, you are working on your own business property or you are working on a school and being paid on behalf of an education authority.
How do I register for CIS?
It’s a simple matter of filling in a form. HMRC runs a dedicated helpline, or you can find guidance online at the GOV.UK website. All contractors must register. It is voluntary for subcontractors but does entitle you to a lower rate of tax deduction.
What falls under CIS?
For the purposes of CIS, construction work covers site preparation; demolition and dismantling; building work; alteration, repairs and decorating; installing heating, lighting, power, water and ventilation systems, and cleaning inside buildings are construction work.
How is CIS tax calculated?
The contractor deducts the qualifying materials (the costs the subcontractor has incurred) from the gross amount (the total to be invoiced). This leaves the labour amount. From this amount the contractor deducts either 20% or 30%, depending on whether the subcontractor is CIS registered or not. This deducted amount is paid to HMRC.
Do I need to register for CIS as a contractor?
Yes, you must register for CIS if you are a contractor. Failure to do so can lead to penalties running into tens of thousands of pounds.
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