What are CIS regulations?
Under the Construction Industry Scheme ( CIS ), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs ( HMRC ). The deductions count as advance payments towards the subcontractor’s tax and National Insurance. Contractors must register for the scheme.
Is CIS a legal requirement?
Registering with the CIS may not strictly be compulsory for subcontractors, but it can be painful if you don’t. Registering means that your contractor takes 20% of your pay and gives it to the taxman. If you’re not part of the scheme, that cut rockets up to 30%!
What activities fall under CIS?
The CIS covers more than what you may typically think of as building and civil engineering work, for example it includes work in demolition, site clearing, repairs and decorating, and installing power systems. The HMRC CIS manual details what work is included within the Construction Industry Scheme.
What happens if contractor does not deduct CIS?
Section 62 Finance Act 2004 requires contractor’s to pay over the CIS they have deducted to HMRC. If HMRC finds that a contractor has failed to make the necessary CIS deductions, they will usually issue a computation to the contractor showing the CIS due and will request their agreement to the figures.
Who regulates CIS?
Regulatory Framework Central Government has given powers to the SEBI to regulate CIS. According to Sec 12(1)(b) of the SEBI Act, 1992 no entity is eligible to launch CIS before registering it with SEBI as collective investment management company.
What is CIS HMRC?
CIS (short for “the Construction Industry Scheme“) was set up by HMRC to collect income tax throughout the year from people working in the construction industry.
Are CIS cards still valid?
It does not have an expiry date but it shows the photograph and signature of the authorised holder, along with their National Insurance number. CIS 4(T) is the temporary registration card issued to subcontractors who do not hold or do not know their National Insurance number.
Is CIS self-employed?
As a CIS subcontractor you are considered self-employed but working for a contractor who haas to deduct a portion of your invoice (usually 20%) and pay it to HMRC on your behalf.
Does CCTV come under CIS?
Burglar alarms: Installation of security systems such as burglar alarms and CCTV are excluded from CIS.
What trades are exempt from CIS?
There are also certain jobs that are exempt from the scheme, including:
- architecture and surveying.
- scaffolding hire (with no labour)
- carpet fitting.
- delivering materials.
- work on construction sites that is clearly not construction, for example running a canteen or site facilities.
What happens if a contractor doesn’t pay a subcontractor UK?
It is unfortunately common for a contractor to fail to pay a subcontractor within the agreed terms. If so, the subcontracting party is entitled to pursue debt collection action to recover what is owed to them.
Who can invest in CIS?
Eligibility for CIS Registration The applicant has to be set up and registered as a company under the Companies Act of 1956. The applicant has specified the management of collective investment schemes as one of the main objects in its Memorandum of Association.