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My name is Lyanne and I’m the managing director of Wilds. Happy new year to you all! Are you going to make 2020 one of the best years? What new year’s resolutions have you made? We’d love to hear what they are and to put a plan in place to help you to achieve them. Come in for a coffee and a chat and get the year off to a good start. Contact us now.

 

CIS

CIS – Construction Industry Scheme

If you work in the construction industry you need to make sure that all your subcontractors, or as the subcontractor, that you are registered on the CIS scheme.

When registered there are two bands for a subcontractor – Gross and net. Gross status (0%) means no CIS is deducted on invoices as any liabilities are paid to HMRC at the end of the year. Net status (20%) is the band majority of subcontractors will be on and is equivalent to the basic rate band of income tax. For subcontractors not registered or verified on the CIS scheme there is one further band which is higher. The higher (30%) is more than income tax and is used as an incentive for subcontractors to register.

If a subcontractor is not registered and the appropriate treatment is not taken, not only the subcontractor, but also you as the contractor can land yourself in trouble with HMRC.

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