Contractors must verify each subcontractor with HMRC before making payments. HMRC will then inform the contractor whether to deduct 30%, 20% or 0% tax.
CIS deductions must be paid to HMRC by the 19th day of the following tax month – which runs from the 6th of one month to 5th day of the following month. These are reported on a monthly CIS return. Each subcontractor must also be supplied with a monthly statement of deductions. Where no deductions have been made a nil return must be filed and getting these in on time is vital in order to prevent late filing penalties.
We can manage your CIS contractor compliance process, including verifying your subcontractors, preparing and submitting CIS returns and providing you with statements of deduction.