Construction Industry Scheme

Construction Industry Scheme

What is the new CIS?

Effective from the 5th April 2007, HM Revenue and Customs are introducing a new Construction Industry Scheme (CIS) taxation scheme.

The scheme relates to the income tax on self-employed construction contractors, and will impact the whole construction industry including contractors, subcontractors, self-employed construction workers, and others in the construction industry in the United Kingdom.

Under the new CIS scheme the Revenue will be placing great emphasis on automatic penalties for late returns, failure to provide records or payslips etc but also a monthly emphasis on the employed/self-employed position of the subcontractors. If contractors get this wrong, once again penalties may apply.

How the New Construction Industry Scheme effects Contractors

  • You will have to check that new subcontractors are registered with HM Revenue & Customs (HMRC). You must also check with HMRC whether you need to make gross or net payments to each. 

  • You will no longer have to file CIS annual returns.

  • You will have to submit a monthly return detailing all payments made to subcontractors no later than 14 days after the end of every tax month. This will replace the previous voucher system. 

  • On your monthly return, you will also have to declare the employment status of all workers that you've listed.

  • You must submit nil returns in a month where you make no payments, or you could face a penalty. You will be able to submit nil returns over the telephone, via the internet or on paper.

How the New Construction Industry Scheme effects Subcontractors

  • If you are already registered under the existing CIS, you will not have to re-register. 

  • You will be required to register with HMRC if you are a new subcontractor - or hold a temporary registration card that is due to expire on or before 6 April 2007.

  • You will no longer be required to have CIS registration cards or certificates. 

  • It is your responsibility to make sure that you are properly registered on the HMRC system. If not, contractors will have to make deductions from your payments at the higher rate of 30 per cent.

Hexagon can assist you with the new CIS:

CIS

  • Hexagon will reduce your CIS administration burden

  • Hexagon will complete and submit your monthly returns and statements

  • Hexagon will verify your subcontractors

  • Hexagon will pay your subcontractors

  • All for a competitive fee

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Getting Started

CIS Service



Contact Hexagon regarding the Construction Industry Scheme

Hexagon's expert advisors are on hand to help you from 9am-5pm, Monday to Thursday and 9am-4pm on Friday:

  • Call 0161 435 6088

  • Email:

  • Or complete this quick form

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