The Construction Industry Scheme (CIS) sets out the rules for how payments to sub-contractors for construction work must be handled by contractors in the construction industry.
The scheme applies mainly to contractors and sub-contractors in mainstream construction work, however businesses or organisations whose core activity isn’t construction but have a high annual spend on construction may also count as contractors and fall under the scheme.
As a contractor you have certain obligations under the scheme, including registering with the scheme, checking whether your sub-contractors are registered with HM Revenue & Customs (HMRC), paying sub-contractors and submitting monthly returns.
If you are a sub-contractor, you need to register with HMRC – as well as your main business name you can register up to one trading name. You must also keep HMRC informed of any changes to your business (including changes to the structure, address, business name, partners etc).
Books and Numbers have many clients who fall within this scheme, and whilst some clients do undertake their own returns, most rely on us to submit their monthly returns and advise them of any amounts payable. We can verify the subcontractors for you and produce the payment certificates.