22 Jan

CIS explained in fewer than 270 words

 

The ’Construction Industry Scheme (CIS) has been around in one form or another for decades. However, it is important to be aware that it does NOT apply just to contractors in large-scale construction projects, and many property investors/developers have found to their cost that they have unwittingly fallen within its scope.

 

What is the CIS?

Basically, CIS applies to ’construction operations ‘as defined in legislation, which broadly includes all construction industries.

 

What happens if I pay sub-contractors under CIS?

Before paying a new sub-contractor for the first time, he must be ‘verified’ by checking their details with the Construction Industry Scheme (HMRC) who will advise if the sub-contractor may be paid gross, or after withholding 20% tax – or, if they cannot trace the sub-contractor’s tax records – after withholding 30% tax – Payswell have the facilities to verify workers registered under CIS in a matter of seconds escaping the need to call CIS helpline.

 

It is also necessary to file monthly returns, all payments made to sub-contractors in the last tax month and if it’s a day late then there’s a penalty – Payswell automatically complete monthly returns by working closely with HMRC on your behalf taking the deadline stress away.

 

Payswell takes care of verifying, tax returning and ensuring every subcontractor is paid not only correctly but efficiently – we take all the stress away from processing payroll whilst following and keeping up to date with current legislations. If you feel to much of your time is taken up with payroll and you could use a hand, please get in touch today.