What is a CIS Return?
If you are registered with HMRC as a contractor then every month you must file a Construction Industry Scheme (CIS) Return. The CIS Return confirms which sub-contractors you have paid in the previous month and how much CIS tax was deducted. You then need to pay over the total CIS deducted to HMRC by 19th of the following month.
Note that CIS tax is only deducted from the labour element of a sub-contractor’s invoice, therefore if they have charged you for materials or VAT these elements are removed before your CIS tax calculation is made.
Are you a contractor & sub-contractor?
If you operate as a sub-contractor as well as a contractor (i.e. you provide your services to a larger firm that deducts CIS from you, as well as deducting CIS from your sub-contractors) then you can offset the CIS you have suffered against the CIS you have deducted from your workforce.
This may result in no payment being required and could also generate a rebate for you at the end of the tax year.
What happens if you forget?
Failure to submit a CIS Return will result in a £100 penalty from HMRC, therefore it is important that you complete this task, even if no sub-contractors have been paid, in which case you should file a Nil Return.
How can A4C help?
If a4c operate your CIS scheme, then we can help calculate your monthly CIS returns, saving you the trouble. We can also verify new subcontractors on your behalf, and help manage your CIS documentation.
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