The Secure CIS Service

 

•Providing expert assistance to the construction industry

•Please contact the Secure CIS Service on 01327 353136

© 2008 Secure Facilities & Management Limited

183 Watling Street West, Towcester, Northamptonshire, NN12 6BX.

Registered in England & Wales No. 3421480

info@securefacilities.com

 

Every month a contractor must complete a return to HMRC, even if no payments have been made.  The return includes:

 

•  the subcontractor’s details

• details of the payments and    deductions made

• a declaration stating that the  employment status of all subcontractors has been considered.

• a declaration stating that all subcontractors that need to be have been verified.

 

If this return is NOT submitted to HMRC by the 19th of each month there will be an automatic £100 penalty applied.

The Construction Industry Scheme is the framework which sets the rules for payments to subcontractors by contractors within the construction industry as well as some other related businesses.

 

The New CIS Scheme came into force on the 6 April 2007, with the main changes set out below.

 

•The CIS annual return has been withdrawn

 

•This has been replaced with a monthly return made by contractors to HMRC, which must show all payments to subcontractors.

 

•Within this return contractors must make a ‘Status declaration’ which states that none of  the names of subcontractors on the form are employees.

 

•CIS cards, vouchers and certificates have been withdrawn

 

•Contractors must verify new subcontractors with HMRC

 

•Once verified HMRC will then notify the contractor whether to pay the subcontractor either gross or net (with a standard rate of deduction of 20% or a higher rate deduction at 30%).

 

•If a subcontractor is not registered with HMRC then the contractor must deduct tax at the higher rate.

 

•Even if there are no payments in a month a contractor MUST make a nil return. There are penalties for failing to make this return.