Construction Industry Scheme- What do I do if I am a Contractor and a Subcontractor?

This is the final blog in a series of blogs we are running regarding The Construction Industry Scheme (CIS) in previous blogs in the series we have looked at What it is and does it apply to you; and What to do if you’re a contractor or a subcontractor. In this final blog we will look at what to do if both apply.

If you work within the construction industry you will have heard this term CIS and hopefully you will have read our first blog CIS what it is and does it apply to you. This will have explained what you are within the scheme. But what if you are both subcontractor and contractor?

Contractor and Subcontractor
If you are both a contractor and a subcontractor, then all the rules which apply to contractors still apply to you.
When you’re being paid by a contractor for construction work you are a subcontractor and you must follow CIS rules for subcontractors. However, when you’re paying your own subcontractors you must abide by the CIS rules for contractors.

Monthly returns and payments
Monthly returns still have to be made. The CIS deductions which have been made from subcontractors still need to be paid over to HMRC each month, along with any PAYE liability’s amounting from employees. However the company can deduct from this amount any deductions it has suffered from operating as a subcontractor.

If you have specific questions regarding CIS why not contact one of our team who would be only too happy to help you.

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