The Construction Industry Scheme sets out the special tax rules for subcontractors who work in the construction industry and how payments must be handled by contractors.
Contractors: As a contractor, you are required to meet specific obligations under the scheme, including registering with HMRC (HM Revenue & Customs), checking whether your subcontractors are registered with HMRC, paying subcontractors, deducting tax and submitting monthly returns and statements confirming these payments.
Services we provide for contractors:
- Register you with HMRC as a contractor;
- Verify your subcontractors with HMRC;
- Ensure you pay your subcontractors correctly within the scheme;
- Supply deduction statements to the subcontractors;
- Keep your records in good order and supply HMRC with monthly returns;
- Prepare and submit contractor’s monthly returns.
Subcontractors: If you are a subcontractor, your main obligation is to register with HMRC. You must also keep HMRC informed of any changes to your business such as changes to your business address, business name, business partners and other relevant information.
Services we provide for subcontractors:
- Determine your status as a subcontractor or employee, (or both) and register you with HMRC accordingly
- Manage and organise your business records
- Prepare your end of year self-assessment tax return and calculate your tax liability/ refund where applicable.