Construction Industry Scheme
GCAMS provides the following work as required by the Revenue:
You must register as a contractor with the Construction Industry Scheme (CIS) if:
- you pay subcontractors to do construction work
- your business doesn’t do construction work but you usually spend more than £1 million a year on construction
You may be a sole trader, in a partnership or own a limited company.
If you’re not sure if you need to register, check who is covered by CIS.
Rules you must follow
- You must register for CIS before you take on your first subcontractor.
- You must check if you should employ the personinstead ofsubcontracting the work. You may get a penalty if they should be an employee instead.
- Checkwith HM Revenue and Customs (HMRC) that your subcontractors are registered with CIS.
- When you pay subcontractors, you’ll usually need to make deductionsfrom their payments and pay the moneyto HMRC. Deductions count as advance payments towards the subcontractor’s tax and National Insurance bill.
- You’ll need to file monthly returnsand keep full CIS records – you may get a penalty if you don’t.
- You must let HMRC know about any changes to your business.