CIS Compliance
The Construction Industry Scheme (CIS) is a UK government initiative designed to regulate tax payments within the construction sector. If you are a limited company operating within CIS is critical to avoid penalties and ensure smooth business operations.
Contractors and Subcontractors: Under CIS both contractors and subcontractors need to register with HMRC.
Limited Company contractors: You are required to deduct tax from subcontractors payments under CIS. The amount deducted depends on the subcontractor’s CIS status.
Key Compliance steps for CIS LTD: To comply with CIS as limited company you need to follow these steps
- Step 1 – Verify Subcontractors
- Step 2 – Make CIS Deductions
- Step 3 – File monthly CIS returns
- Step 4 – Pay HMRC
- Step 5 – Provide Subcontractor Payment Statements
- Step 6 – Keep detailed records
ARCHERS ACCOUNTANTS TIP: For limited companies compliance with CIS is crucial for avoiding penalties. It is important to understand your responsibilities and keep records to ensure you are compliant with HMRC obligations. For more information on CIS compliance or assistance with handling deductions. Contact us today!
