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Markel Tax

Construction industry tax and CIS

As well as the need to comply with employment status regulations, the construction industry is unique in having its own special tax considerations for self-employed or limited company subcontractors. These arrangements are called the Construction Industry Scheme, or CIS, as they are more commonly known. 

Under CIS the contractor who engages a subcontractor to carry out work verifies with HMRC how the subcontractor will be paid. Payment can occur in one of three ways. Any deductions are made from the gross fee and passed to HMRC each month, or where a subcontractor submits their annual self-assessment or company tax return, the deduction is available as a credit against the final tax and NIC bill. 

The process appears straightforward, but there are pitfalls for the unwary. With many years’ experience of CIS issues, the Markel Tax team can offer robust support on this matter.

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Paul Mason
Paul MasonHead of Tax Partnerships
David Harmer
David HarmerTax Consultancy Manager