Construction Industry Scheme

Supporting the Construction Industry with Hassle-Free CIS Compliance and Expert Tax Solutions.

The Construction Industry Scheme (CIS) applies to companies and organizations such as building firms, government departments, and local authorities. Any business spending over £1 million annually on construction is classified as a contractor under CIS. Subcontractors are individuals or businesses performing work for contractors. Some businesses may act as both contractors and subcontractors.

Overview of CIS

The CIS establishes specific rules for Tax and National Insurance for those working in the construction industry. All contractors who are self-employed, owners of limited companies, or partners in a partnership must register for the Construction Industry Scheme (CIS) and file a CIS return annually.

Contractor Obligations:

Under CIS, contractors must deduct 20% from payments made to subcontractors and remit these deductions to HM Revenue and Customs (HMRC). These deductions serve as advance payments toward the subcontractor's Tax and National Insurance liabilities.
If a subcontractor is not registered under CIS, contractors must deduct 30% instead.

How Groopacc Taxation Can Help ?

At Groopacc Taxation, we offer specialized services to assist clients with all aspects of CIS:

CIS Registration and Filing:

We help contractors and subcontractors register for the Construction Industry Scheme.
We ensure your CIS returns are prepared and filed accurately with HMRC.

Tax Refunds:

If you’ve paid more in deductions than your liability, we assist in securing a refund.

Monthly CIS Returns:

We file monthly returns on behalf of our clients, ensuring compliance with HMRC deadlines.

Verification Code Assistance:

We help clients obtain verification codes from HMRC for subcontractor payments.

Specialized CIS Consultation:

Our CIS experts provide tailored advice to help clients navigate the complexities of CIS rules, including determining self-employment or employment status.

Avoiding Penalties:

We educate clients on the difference between self-employment and employment statuses to avoid penalties of up to £3,000 imposed by HMRC.
Our consultants help evaluate factors such as control, integration, income sources, economic reality, risk and rights under employment legislation to determine the best approach for recruitment and compliance.

At Groopacc Taxation, we simplify the complexities of the Construction Industry Scheme, ensuring our clients remain compliant while minimizing tax liabilities. Whether you’re a contractor, subcontractor, or both, our expertise will help you stay ahead in the construction industry.

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