Team Construction News
Have you completed your 2010/11 tax return yet?
05 January 2012
The 31st January deadline for filing your 2010/11 self-assessment tax return is approaching fast. Read More >
Industry News
SMEs should 'experiment with online marketing'
16 May 2012
Small to medium-sized enterprises (SMEs) should experiment with their online marketing to see what works for them, according to Chris Robinson, the managing director of Boost Marketing. Read More >
Accreditations
About CIS
The Construction Industry Scheme (CIS) largely applies to contractors and subcontractors involved in mainstream construction work. In some cases businesses that have a high annual spend on construction, without this being their core business may also fall under the scheme as contractors.
Team Construction takes on the role of the contractor in so far as it carries out all of the administrative tasks associated with your assignment and status. You (the subcontractor/worker) will find your own assignments and negotiate your rates. We then deduct the relevant amount of Construction Industry Scheme tax at source (you must register as a subcontractor with HMRC to obtain your CIS status), you will be responsible for making your own National Insurance payments.
If you work as a subcontractor and want to do this under the CIS you must register with HM Revenue & Customs before you start working.
Once you have registered for CIS status HMRC will send you your UTR (unique tax reference) number. This will identify you on their systems and enable the contractor (Team Construction) to pay you deducting only 20% CIS tax. The UTR is a unique set of 10 digits.
If you do not register before starting work legally contractors have to make a higher CIS tax deduction from your payments of 30%.
Once you are registered for CIS status tax deductions are 20%. If you were not fully registered before starting work you may be able to claim the difference in CIS tax back (for the period you paid 30%) via your end of year tax return.
What is a CIS card?
CIS cards used to be issued to contractors and subcontractors in the construction industry. This was replaced by the much simpler unique taxpayer reference (UTR) number in 2007.
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sub-contractor?
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