top of page
You should register for the Construction Industry Scheme (CIS) if you work for a contractor and you’re one of the following:
a sole trader
the owner of a limited company
a partner in a partnership or trust
Under CIS, a contractor must deduct 20% from your payments and pass it to HM Revenue and Customs (HMRC).
These deductions count as advance payments towards your tax and National Insurance bill.
If you do not register for the scheme, contractors must deduct 30% from your payments instead.
You do not need to register for CIS if you’re an employee.
Register for the Construction
What we can do for you as your Wirral Chartered Accountants?
We will complete your self-assessment and ensure you are only paying the correct amount of tax and in most cases getting you the tax refund you work hard for!
We use our expertise and knowledge to ensure you get your tax paid correctly and on time! Additionally, we will ensure if you've overpaid tax then we will get you your tax refund!
We can advise, calculate and submit your self-assessment tax return to HMRC from as little as £150!
CIS - Subcontractor: Get Paid
To be paid correctly by a contractor, make sure you give them the exact same legal business name or trading name you gave when you registered for the Construction Industry Scheme (CIS). You should also give them your Unique Taxpayer Reference (UTR) so they can verify you.
If you do not, this could affect how much you get paid.
Deduction Rates for Construction Businesses
When a contractor pays you under CIS, they’ll normally make deductions at the standard rate of 20%.
Contractors will make deductions at a higher rate of 30% if:
you are not registered for CIS
they cannot verify you
you give the wrong name for your business
Your contractor should give you monthly statements of payments and deductions. Use them to calculate whether you still owe tax and National Insurance to HM Revenue and Customs (HMRC) or are due a refund.
When you’re registered with the Construction Industry Scheme (CIS), you’re still responsible for paying the correct tax and National Insurance for your business, even if deductions have been made by contractors throughout the year.
Contractors will give you a monthly statement of what they’ve paid you and deductions they’ve made to help with your accounting.
Hear from our clients
“I would have no hesitation in recommending Lewis Smith Accountants in providing an all-round taxation and consultancy service. I am delighted to say the innovative approach and positive advice is refreshing, helping maintain the confidence that we are minimising tax liabilities."
bottom of page