The Construction Industry Scheme (CIS) was first created to facilitate the collection of taxes from those working in the construction industry. Those who choose to operate as a CIS registered worker can take advantage of a wide range of benefits that come with being CIS registered. Those who choose not to register under CIS will as a result find themselves with a significant increase in their tax liability as their deductions are higher. If you are working in the construction industry, either as a contractor, a sub-contractor or you work on a construction site, the work you do may fall under the Construction Industry Scheme.
CIS may be a difficult web to navigate through. Luckily for you, Lonmay Accountancy will be with you every step of the way. Our expert accountants are well trained and have years of experience in registering contractors and sub-contractors under CIS so that they are able to reap the benefits of the scheme and steadily grow their business.
What is the Construction Industry Scheme (CIS)?
The construction industry scheme (CIS) was devised to limit the amount of tax lost as a result of sub-contractors in the construction industry, either by under-declaring or failing to notify their charge ability to UK tax. The CIS operates to withhold tax from the source, at the point of making a contract payment. As part of CIS, a contractor makes deductions from your payments to give to HMRC. The deductions count towards your tax and National Insurance Bill. Registration with the C.I.S. is compulsory within the construction industry.
Construction Industry Scheme Benefits
The main benefits of operating a CIS registered limited company are:
- Monthly deductions of 20%, less than the 30% for those who are not CIS registered
- Tax relief on pension contributions
- The chance to apply for gross payment status, and enjoy the additional payment benefits of a limited company
- You also get the option to pay yourself a dividend as the shareholder of your own limited company
- Additional tax savings and flexibility over your finances
How Can We Help?
Give Yourself Pease of Mind – Let Us Handle The Paperwork
Lonmay Accountancy allows you to focus on your job and leave the complex paperwork to us. Our specialized limited company accounting services, therefore, enables you to run your business with ease. We take care of the following:
- Your CIS registration forms
- Your administration (monthly returns)
- VAT Registration (where applicable)
- FRS Registration (where applicable and appropriate)
- Corporation Tax and PAYE Registration
- Company Incorporation
Lonmay also provides other services to help simplify the entire process for our clients.
Contact Us Today
To find out more about our services and how we can help your business please call 01501-733444 or e-mail: enquiries@lonmayaccountancy.co.uk.
For a FREE no obligation quote on an accountancy package tailored to suit your individual business needs please provide the following,
1) Last year’s accounts or your Estimated Turnover and Anticipated Expenditure
2) Number of Years your business has been trading
3) Contact Telephone number.