Registering As A Subcontractor Under CIS
If you are carrying out construction work for a contractor, you are a subcontractor. If you fall under both categories you are required to register as a contractor and as a subcontractor.
The same rules apply with the CIS Tax Deduction rates so it makes sense to register as a CIS subcontractor to take advantage of the 20% tax deduction instead of 30%.
If you have a Government Gateway Account, this is where you can apply to be a subcontractor. Again, your accountant can do this for you.
Contractors are businesses. It is important to know that working directly for residential clients are not businesses so CIS will not apply. Therefore you must establish who the work is with, are you working for a contractor or working directly with the household.
What Information Do I Need To Register For CIS
To register for CIS you will need a few things:
• Your business name - you can also give your trading name if it is different
• Your National Insurance Number Your Unique Taxpayer Reference Number (UTR) for your business
• Your VAT number if you are VAT registered.
• You will need your Government Gateway ID and password that you used when you registered for Self-Assessment (or other services)
If you’re a sole trader and you already have a UTR, you can register for CIS online. You will need your Government Gateway user ID and password you used when you registered for Self Assessment.
If you don’t have a UTR, visit here and choose ‘working as a subcontractor’ when prompted to register for Self Assessment and CIS. Limited companies and partnerships have their own online forms. If you are a partnership, HMRC will register this separately to your sole trader registration - they’ll require your partnership UTR and trading name.
There is also a CIS helpline that you can use if needed - 0300 200 3210
Or your accountant will be able to support you through this process.
This article was written for Construction Insider and Saint Financial Group. Saint is a multidisciplinary group based in the UK that helps construction businesses develop and grow. SaintFG offers a range of quality solutions in supporting businesses.
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