The Construction Industry Scheme (CIS) was introduced by the Government to set rules about how payments are made for construction workers.
We introduced CIS to help contractors that wish to provide services under the construction sector, or that are already working within CIS. By engaging with us as a CIS sub-contractor, you can benefit from typical tax rates of 20% (subject to individual circumstances) without the burden of endless paperwork.
There are specific rules that HMRC expect CIS workers to follow. ICS work alongside you to ensure that you are abiding by these rules and are here to assist with any questions that you may have.
Who should sign up?
You should register as a contractor if either:
- You pay contractors for construction work
- Your business spends an average of more than £1 million a year on construction in any 3-year period
HMRC’s definition of construction work includes:
- preparing the site, eg laying foundations and providing access works
- demolition and dismantling
- building work
- alterations, repairs and decorating
- installing systems for heating, lighting, power, water and ventilation
- cleaning the inside of buildings after construction work
Exceptions to the CIS scheme include:
- architecture and surveying
- scaffolding hire (with no labour)
- carpet fitting
- making materials used in construction including plant and machinery
- delivering materials
- work on construction sites that’s clearly not construction, e.g. running a canteen or site facilities
If you are paid by a contractor for construction work you undertake, you should register as a subcontractor.
To register as either a contractor or sub-contractor, or for more information on what is classed as construction work, please visit the HMRC website
How do I sign up with ICS?
To sign up with ICS we will need:
- A copy of identification
- Agree to checks being made with the UK border agency (if applicable)
- Copy of right to work in the UK
- Your UTR number
- Your VAT number (if registered)
- You will be required to enter into a self-employment contract
The Benefits of Being CIS with ICS:
- Increased take-home net pay (than other traditional PAYE methods)
- Same day payments, making sure you get paid on time – every time
- Dedicated account manager available every working day
- Contracting administration and invoicing undertaken by our highly experienced team
- Competitive margin of just £15 per week
- Self-Assessment Tax Return completed for just £100 +VAT! Access to a fully qualified in-house accountant
- Clear, honest and jargon-free advice whenever you need it
We also have a selection of guides on the services we offer, click here to view them.