Construction Industry Scheme (CIS)
All Tax has established a reputation as a market leader in the CIS sector. This success has been driven by hard work and the faith our clients have put in our ability, quality of service & professionalism. We have developed a niche within the market place both by our expertise and approach. With over 15 years experience we have become market leaders and can take care of your complete CIS needs.
By being in the market for a long time we have established networks with providers of Indemnity insurance, public liability and site risk assessments. Thus we service contractors and subcontractors and able to take care of their requirements all under one roof saving you time and headache.
It may be worth reiterating at this stage that we have seen through two recessions the dot com bubble and the credit crunch the latter greatly impacting the CIS sector yet we have remained resilient to come out and remain market leaders. This is not an arrogant boast, but to remind our clients that they remain our biggest asset and any prospective clients can be reassured by our track record in the sector that is continually exposed to companies closing down overnight.
If you are self-employed you will need to contact the Inland Revenue directly to get a CIS number. This process normally takes 3-4 weeks.
If you are working through a CIS company, the company must be registered with the Inland Revenue for CIS. If you are an All Tax Fully Administered Company (FAC), we will do this for you. The number is normally issued around 20 days after the company is incorporated. Your employer will then need to verify your company with the Inland Revenue and make the appropriate deductions. The standard CIS rate is 20% and this will be deducted from your weekly wage. If your company has not been registered for CIS, the deduction rate will be 30%.
Each month you should receive a deduction statement (instead of the old CIS25 vouchers) from your employer. These will be made out to your company. You will need to retain these in order to claim back the refund. The deduction statement summarises your CIS deductions for the month.
As your annual deduction is usually higher than your final company taxation bill, you will be entitled to claim a repayment at the end of the tax year. This is called a CIS refund. Applying for and receiving this refund can be a drawn-out and complicated process. Unless you have first-hand knowledge of the UK taxation system, it can be virtually impossible to obtain a refund, as a lot of construction workers have discovered to their peril.
We at All Tax pride ourselves on being the only specialised CIS accounting and taxation company in London. Before you begin contracting in the construction industry, we recommend you contact one of our fully qualified consultants to discuss the options available to you. Although it may appear complicated, working under CIS can be a simple and efficient means of managing your tax affairs whilst contracting in the UK, provided you take the right steps at the beginning.