Registering As A Contractor Under CIS
When you become a contractor under CIS you have to register as soon as possible! A Contractor is someone who pays subcontractors for construction work or when their average annual spend over a three year period exceeds £1 million on construction work.
To register as a contractor it is quite simple, you can use this link to go to HMRC website, where you can register as a CIS contractor.
You will be asked to answer a series of questions, they are quite simple to answer and at the end, you will be asked if you have an HMRC online account. If you don’t you will be asked to create one.
Or you can ask your accountant to do it for you (there shouldn’t be a charge as it is very straightforward).
What Are Your Contractor Responsibilities Under CIS?
Contractors have to make an online monthly return to HMRC:
1. Confirming that the employment status of subcontractors has been considered
2. Confirming that the verification process has been correctly dealt with
3. Detailing payments made to all subcontractors and
4. Detailing any deductions of tax made from those payments
The contractor must submit the following information to HMRC:
1. Subcontractors name
2. Verification number
3. Gross amount
4. Materials amount
5. Tax Deducted
If you need any support in learning about CIS or your responsibilities reach out to our team today! If you would like to learn more about CIS check out our CIS Resource Hub here.
Frequently asked questions
This article has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.
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