Construction Industry Scheme
The Construction Industry Scheme (CIS) covers the whole of the UK construction industry. It is the government’s taxation scheme which sets out the rules on how payments for construction work should be handled.
Zeva holds 'gross payment status' under the scheme (this replaced the old CIS5 card), meaning that your agency or company do not have to make a 20% tax deduction at source (as they would have to under standard deducted status, formerly CIS4) This appeals to them as it reduces their administrative burden.
Who the Construction Industry Tax Scheme Applies To
The CIS scheme mainly applies to contractors and subcontractors who work in the construction industry. Some companies also fall under the scheme. These companies may not necessarily operate in the construction industry but have a high annual spend in this area.
To help you understand whether you fall under the construction industry scheme you can visit the following link from HMRC.
http://www.hmrc.gov.uk/cis/decide-if-cis.htm
What Contractors Must Do Under the Construction Industry Scheme
Certain obligations and rules apply to contractors and businesses under the construction industry scheme. First of all contractors must apply for the scheme and check whether their subcontractors are registered with HM Revenue & Customs. There are a number of checks in which contractors must go through. The following page on the HRMC provides more information.
http://www.hmrc.gov.uk/cis/sub-reg-obs.htm
Zeva can provide support on the process and if you would like more information please get in touch.
