Construction Industry Scheme - CIS
If you are a contractor in the UK, you might be familiar with the Construction Industry Scheme (CIS). If you have not heard of that before, this guide will explain the basics.
As a contractor, you should regularly report and pass payments to HM Revenue and Customs (HMRC). If you have been processing these yourself, you might get confused by the complexities. However, you do not have to do this yourself. We are a team of financial specialists with extensive expertise in dealing with CIS requests. We are here to help you simplify your work.
If you are interested in using our help and would like to learn about what we can do for you, please review the information below. If you have more questions, please complete our contact form and we will respond to your questions promptly.
Eligibility for CIS
In order to be eligible for CIS, you need to:
Register
Register as a Contractor with HMRC
Hire Subcontractors
on a regular basis and have incurred costs of at least £1 million over three years
Pay Subconstractors
for construction work and not run your business as a construction company
CIS covers work such as building constructions, demolitions, preparations, installations, alterations and civil projects. CIS does not cover work such as floor fittings, surveying, deliveries, scaffolding and framing, or making construction materials and tools.
About Construction Industry Scheme
The Construction Industry Scheme, or CIS, is a set of UK government regulations relating to how contractors deduct funds from a subcontractor’s payments for taxes and contributions to national insurance by contacting HM Revenue and Customs.
It is not a simple matter handling and administering this aspect of your business finances. A number of self-employed business owners and limited companies look for assistance from a CIS umbrella agency such as ours (https://www.payrollumbrellaservices.co.uk).
The agency is an outsourced team of experts who can handle payroll and manage the accounts for the business.
The CIS Umbrella Agency
The CIS umbrella is an agency that works with you to manage the paperwork from your contractor business. They make sure that your documents are complete and correct, and they file them properly with HMRC.
Instead of doing the paperwork yourself, the agency will manage your financial information and will make sure that the data relating to your CIS contributions is complete and accurate at the HMRC.
You first have to register for this scheme if you want HMRC to make the deductions from the payment.
You can get help from a CIS umbrella agency while also get PAYE (Pay As You Earn) payroll services. Basically, we are here to remove your burden of managing subcontractor payroll tasks. We will take care of your company finances so you have one less thing to worry about.
Self-Employed Umbrella
You might get a different idea of what a “self-employed umbrella” is. When you use an umbrella agency for CIS assistance, you are not merging with the agency. The agency is a self-employed business, and you are merely getting assistance from the single business. We operate our umbrella agency as a self-employed business through which we can handle a wide spectrum of CIS issues.
We make sure that your business continues have the sole contractor status, and we will manage all subcontractor finances.
- We will handle the relevant invoices and taxes, and we will work with HMRC on your behalf.
- We will assign you a dedicated account manager who will keep track of and review current contributions from you and your subcontractors
- If, at any time, you want to review your invoices and records, or require advice, you can just call our team of experts
