Under the CIS, contractors must deduct money from payments to subcontractors and pass it to HMRC. The payments count as payment towards the subcontractors tax and national insurance.
Contractors include property developers and builders.
A Subcontractor is a person receiving payment under a construction contract and who either: carries out the work, provides staff to perform the work or who subcontracts the work to another party.
The CIS rules and regulations can be complex for both the contractors or subcontractors but HMRC expects full compliance.
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Contact our specialists using our contact form or call 01582 761121.