Construction Industry Scheme Tax

CIS Tax Services for the Construction Industry: What You Need to Know

At JDH, we understand that builders often face challenges with paperwork (we’ve seen it first hand—sorry, guys!). Due to this, HMRC requires contractors and subcontractors in the building industry to have monthly tax deductions, ensuring compliance and proper reporting.

If you’re working in construction, CIS (Construction Industry Scheme) will likely affect your business, whether you’re a contractor or a subcontractor.

Do You Need to Register for the CIS Scheme?

Contractors are required to register for the CIS scheme. However, subcontractors aren’t legally obligated to do so. That said, if you’re not registered, HMRC will apply higher tax deductions to your payments. Therefore, it’s beneficial to register to avoid unnecessary deductions.

Why Compliance Matters: Avoiding Penalties

CIS can be a headache for small businesses, particularly when it comes to monthly submissions. If you fail to comply with the submission deadlines, HMRC will impose a fine of £100 per period, per month. This penalty can add up quickly and create unnecessary stress for your business.

How We Can Help You Stay Compliant

We know that managing CIS can be time-consuming and confusing. That’s where we come in. Our experts simplify the process, ensuring your tax deductions are accurate and your submissions are on time. By working with us, you’ll avoid costly mistakes and unnecessary penalties.

Need Assistance?
Navigating CIS tax rules doesn’t have to be difficult. Contact us today to get expert CIS tax support and ensure your business stays compliant with ease.

Real Life Example: How We Helped a Client Avoid a £10,000 Fine

One of our clients faced a £10,000 fine due to failure to provide essential information for CIS tax calculations. This led to 72 letters arriving on his doorstep on a Saturday morning! Thankfully, we managed to get the fine reduced to zero thanks to technicalities—but why risk the stress of non-compliance?

What Do You Need to Do?

To avoid penalties like this, simply provide us with the necessary documents, including:

• CIS statements from contractors (if applicable)

• A list of subcontractors, including their UTR, NI number, and invoices

Once we have this information, we’ll take care of the rest.

What We Do for You

We handle the calculations, align everything with your payroll (if you’re a limited company), and ensure everything is submitted accurately and on time to HMRC. Our expert team ensures that your CIS deductions are correct, avoiding costly mistakes and penalties.

Get Your Tax Refund Early

If you’re self-employed with regular CIS deductions, we can help you get your tax refund earlier. We offer early preparation of your accounts and tax returns (starting from April), so you don’t have to wait until the end of the year. Simply bring your information in early, and we’ll handle the rest to ensure a smooth, timely process.