CONSTRUCTION INDUSTRY SCHEME

THE CONSTRUCTION INDUSTRY SCHEME (CIS)

The Construction Industry Scheme (CIS) was introduced by HMRC to regulate tax and National Insurance payments of contractors or subcontractors providing construction work in the United Kingdom. Contractors must register under the CIS, and pass deductions from their subcontractors' payments to HMRC. These deductions are advance payments of the subcontractor’s tax and National Insurance. Subcontractors are encouraged to register under the scheme, as a lower rate of deductions is required for registered subcontractors. Read more about CIS here. 

WHAT CIS MEANS FOR CONSTRUCTION BUSINESSES AND CONTRACTORS

The CIS presents various rules and guidelines for contractors and subcontractors that can often be a headache to make sense of. Contractors are required to register for CIS, check that their subcontractors are registered, take the correct deductions from their subcontractors and pay it to HMRC, keep track of the deductions paid, and file monthly returns. There are also various penalties for not following the guidelines. 

HOW BO-SMART HELPS CONSTRUCTION FIRMS ADDRESS CIS

The recent reporting changes and the increased reporting requirements now demanded of the UK construction industry make it difficult for companies to handle the accounting functions in-house. BO-SMART offers specialised accounting services to contractors and companies in the construction industry. Accounting and tax services entail a great deal of behind-the-scenes labour that can often be very time consuming and costly. As a construction accounting expert, BO-SMART takes away the stress of compliance without breaking the bank. We take on the accounting and reporting workload, allowing you to focus on running your construction operations, all while and saving you money. When you outsource to a reputable company like BO-SMART, you can be certain that tasks will be completed effectively and to a high standard.

THE BO-SMART ADVANTAGE