BNA Consulting recommends that you should register as both if you fall under both categories. This ensures you are safely covered and are ensured the best rate. If a subcontractor doesn’t register for the scheme, contractors must deduct 30% from your payments to put towards your tax and National Insurance rather than just 20% with the CIS Returns scheme.
You don’t have to register if you do any of the following construction-related work:
• Architecture and surveying
• Delivering materials
• Making materials used in construction (including plant and machinery)
• Carpet fitting
• Scaffolding hire (with no labour)
However, if you’re unsure it is always best to contact us to check what you need to do.
The Construction Industry Scheme (CIS Returns) is a scheme that contractors have to register for in the UK. As part of the scheme, contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC). These deductions count towards the subcontractor’s tax and National Insurance.
Part of this process means contacting HM Revenue and Customs monthly to inform them of payments you’ve made to subcontractors through what’s called a monthly return. This is where BNA Consulting can help! We can make sure the process of filing your monthly returns is hassle-free to give you one less thing to worry about. It’s important to get help and be fully advised and certain that you’ve gone through the process correctly to avoid surprise fees, penalties and issues. With the help of BNA Consulting, the whole process is simple and easy.
BNA Consulting is an English and Russian Accounting and Consulting firm based in London. Our aim is to help you fully understand your business needs to give you real peace of mind, knowing the paperwork, tax and accounting is in safe hands. We have years of hands-on experience and knowledge of the CIS scheme, meaning we can give you full support through the whole process from both English or Russian speaking accountants. We can help you register for the scheme as a contractor and guide you through the process to make sure you submit your returns accurately and on time to avoid any penalties or issues. As well as our expertise and guidance we can offer your firm:
• Electronic filing of monthly returns
• Online verification of subcontractors
• Submission of annual returns
For subcontractors, who do not have to sign up, we can provide advice so you’re supported if any issues or problems arise. We can also help you work out if you qualify as a contractor or a subcontractor, explaining the key factors which will assign you to either category.
You need to register as a contractor if:
• You pay subcontractors for construction work
• Your business doesn’t run a construction focused work environment but you spend an average of over £1 million a year on construction during a 3-year period.
You should register as a subcontractor if:
• You do any construction work for a contractor
• You’re self-employed and work for a contractor
• You’re the owner of a limited company
• You’re a partner in a partnership or trust
This gives you a rough outline of what registering for the CIS Scheme and submitting your returns will entail, but it’s always best to get in touch with the experts to find out what CIS considers construction work, how your monthly return needs to be laid out and much more for a very reasonable fee. You can count on BNA Consulting to help you every step of the way for efficient, accurate and honest advice and service. Check our long list of expert accounting and consulting services available in both English and Russian on our website and get in touch with us by emailing [email protected] or call on 0044 747 3979 774.
Our team looks forward to hearing from you!