The Construction Industry Scheme ("CIS" for short) is the bugbear of millions of businesses throughout the UK. All businesses within the property and construction sector are legally obliged to operate CIS but many other non-construction businesses are also caught by CIS by virtue of spending significant amounts of money on construction type work each year, including many within the Public Sector.

To many, CIS involves no tax deduction or payments and is simply a massive form-filling exercise. To other businesses, however, CIS is more complicated and often a drain on cashflow as tax payments within CIS need to be collected and paid on behalf of HMRC each month. The one common denominator is that every business caught up in CIS absolutely detest it and it is a huge drain on resources no matter the size of organisation.

From a tax compliance point of view, even where no tax has to be paid over to HMRC, the penalties for non compliance of the scheme can be hugely significant and it is therefore absolutely vital that each business required to operate CIS does so properly to avoid being severely penalised by HMRC.

 

What support can Optimum PAYE provide ?

We typically support Contractors, i.e. those businesses paying others to do the work, although some of our clients are also Subcontractors and we are also happy to work with those businesses that are only Subcontractors.

  • Process review (i.e. to consider how payments are tracked, subcontractors are verified,  how monthly returns are completed, etc)
  • Employment status review regarding the hiring of labour-only subcontractors (see also Engagement of Self Employed Workers)
  • Staff training, e.g. around tax rules, interaction with HMRC, reporting, etc
  • Assistance with any disputes with HMRC
  • Agreeing exemption from CIS with HMRC where appropriate
  • Adhoc queries
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