Construction Industry Scheme - monthly returns
As a contractor under CIS (Construction Industry Scheme) you will need to make monthly returns to HMRC, disclosing who you've paid, how much, and any tax deducted before payment. this is a statutory requirement, and any delay and/or failure in compliance will incur unwelcome automatic penalties - even if one day late (see below).
We manage a number of CIS clients, helping them to get their information in on time by preparing the documentation and then, when agreed, electronically submitting the returns.
What is the Construction Industry Scheme?
The Construction Industry Scheme (CIS) sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry. The scheme applies mainly to contractors and subcontractors in mainstream construction work, however businesses or organisations whose core activity isn't construction but have a high annual spend on construction may also count as contractors and fall under the scheme.
Rather than spell out all the detail here, you can check whether CIS applies to your business and whether you count as a contractor, subcontractor (or both) under the scheme by visiting the HMRC site [click here] and/or downloading their Guide for Contractor and Subcontractors, CIS340.
Late returns or failure to submit can automatically result in substantial penalties - for more information see HMRC site [here].