The way that contractors make payments to subcontractors in the construction industry is a little different to how other businesses and individuals may be paid. The Construction Industry Scheme, or CIS, exists to ensure that subcontractors receive payments efficiently in a certain manner, meaning that it of course falls upon the paying contractors to ensure that their rules are followed. For example, if you wish for contractors to make gross payments, prior registration with HMRC is advised – alternatively, you can pay subcontractors through deductions for the construction work they do.
FinSol Tax Advisors can help you navigate and understand what is expected from you when submitting monthly contractor returns to HMRC and will ensure that you keep relevant records and details on income and outgoings – this way, you will continue to work within HMRC’s guidelines and you will report on and pay for any tax obligations you are required to address. Our team understands both the CIS scheme and what HMRC expects from contractors in the construction industry – meaning we will be able to provide you with reliable support and assistance in filing and reporting wherever necessary. Don’t let contractor payments get complex – let us lend you a helping hand.