93 Green Lane, Chichester, West Sussex, PO19 7DN
01243 788 600

CIS Repayment

If you are working in the construction industry scheme and have tax deducted directly from your sales invoices, we will work out your annual CIS repayment and liaise with H M Revenue and Customs for the refund to be processed.

CIS Administration for Contractors

The Construction Industry Scheme (CIS) rules which have taken effect from 6 April 2007 will put greater pressure on contractors to clarify the status of people working for them, i.e. employed or self-employed, and will involve the submission of a monthly return to HM Revenue & Customs.

The key changes are:

  • No longer any CIS4, CIS5 or CIS6 cards
    The responsibility now falls on the contractor to verify sub-contractors.
  • No longer any vouchers
    New requirement to provide sub-contractors with written statements each pay period.
  • Three types of payment status
    Includes a 30% tax rate for sub-contractors who cannot be verified.
  • New monthly CIS300 return to HM Revenue & Customs
    Needs to be submitted by the 19th of each month. Penalties for late submission of at least £100 per return.
  • New appeals procedure and penalties regime
    Penalties for late submission or getting things wrong can be oppressive. This can be up to £3,000 per return, which is potentially up to £36,000 per annum!

We appreciate that the verification and monthly filing process will put pressure on contractors to ensure the scheme is administered correctly and that returns are filed on time and penalties are avoided. Our CIS administration service, based on the new CIS rules, will remove this new administration burden and pressure on contractor.

The service operates along similar lines to our payroll service, where the contractors provides us with the sub-contractor invoices, statements or time sheets each pay period and we then administer the scheme on behalf of the contractor.

The service in more detail:

  • Processing the gross payment each pay period for each sub-contractor, calculating the correct net payment based on whether the sub-contractor has registered with HM Revenue & Customs, who will confirm which tax rate to apply.
  • Verification of new sub-contractors with HM Revenue & Customs where required.
  • Completion and submission of the monthly CIS300 return to HM Revenue & Customs by the 19th of the month, following approval by the contractor.
  • Production of the sub-contractor statements each pay period.

If you’d like to discuss more on the benefits on outsourcing your CIS procedures, we welcome you to contact us.