Register as a subcontractor if you do construction work for a contrac-tor.
You must register as both if you fall under both categories.
CIS covers most construction work to:
- a permanent or temporary building or structure
- civil engineering work like roads and bridges
For the purpose of CIS, construction work includes:
- preparing the site - for example, laying foundations and providing access works
- demolition and dismantling
- building work
- alterations, repairs and decorating
- installing systems for heating, lighting, power, water and venti-lation
- cleaning the inside of buildings after construction work
Exceptions
You do not have to register if you only do certain jobs, including:
- architecture and surveying
- scaffolding hire (with no labour)
- carpet fitting
- making materials used in construction including plant and ma-chinery
- delivering materials
- work on construction sites that’s clearly not construction - for example, running a canteen or site facilities.
Please contact Priority Accountancy to assists with followings:
- Register as CIS contractors & subcontractors
- Verifying subcontractor ‘s status
- Assist to apply gross payment status
- Advise on IR35 employment status
- Monthly CIS-300 preparation and submission
- Annual CIS certificate for subcontractors
- Application for CIS deduction – refund from HMRC
- Preparing tax returns
Understanding off-payroll working (IR35):
The off payroll working rules can apply if a worker (sometimes known as a contractor) provides their services through their own limited com-pany or another type of intermediary to the client.
An intermediary will usually be the worker’s own personal service company, but could also be any of the following:
- a partnership
- a personal service companies
- an individual
The rules make sure that workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as em-ployees. These rules are sometimes known as ‘IR35’.
The client is the organisation who is or will be receiving the services of a contractor. They may also be known as the engager, hirer or end client.
From 6 April 2017 Public authorities became responsible for deciding if the rules applied where they contracted workers who provide ser-vices through their own intermediary.
From 6 April 2021 All public authorities and medium and large-sized clients outside the public sector are responsible for deciding if the rules apply. If a worker provides services to a small client outside the public sector, the worker’s intermediary is responsible for deciding the worker’s employment status and if the rules apply.
Who the rules apply to:
You may be affected by these rules if you are:
- a worker who provides their services through their intermediary
- a client who receives services from a worker through their in-termediary
- an agency providing workers’ services through their interme-diary
If the rules apply, Income Tax and employee National Insurance con-tributions must be deducted from fees and paid to HMRC. In addition, employer National Insurance contributions and Apprenticeship Levy, if applicable, must be paid to HMRC by the person who pays the work-er’s intermediary.
You can use the Check Employment Status for Tax service to help you decide if the off-payroll working rules apply.
An individual’s employment status for tax determines the taxes the worker and client, or the person paying the worker’s intermediary need to pay, depending on whether a worker is employed or self-employed.
When the rules apply
The rules apply if a worker provides their services to a client through an intermediary but would be classed as an employee if they were contracted directly.
A contract for the purpose of the off payroll working rules is a written, verbal or implied agreement between parties.
The off-payroll working rules apply on a contract-by-contract basis. A worker may have some contracts which fall within the off payroll work-ing rules and some which do not.
