8:03 AM, 18th July 2022, About 2 years ago
The Construction Industry Scheme, or CIS for short, is an HMRC scheme to prevent the loss of tax receipts from contractors, and sub-contractors that didn’t always file or completely fill out tax returns.
It covers a wide range of activities and in simple terms, the contractor withholds the tax as they pay sub-contractors and account that back to HMRC on a monthly basis.
When subcontractors complete their return at the end of the year HMRC are able to check everything is in order.
If you are involved in property development you NEED to know the rules so that you don’t get caught out and left with a hefty tax liability.
You may even be the ‘contractor’ without even realising it.