Calculating CIS deductions correctly is crucial for both contractors and subcontractors. These deductions act as advance tax payments to HMRC, […]
How to Calculate CIS Deductions: A Simple Guide for UK Contractors Read More »
In the UK construction industry, gross payment status under the Construction Industry Scheme (CIS) means contractors pay subcontractors the full invoiced amount without deducting tax (usually 20% or 30%) at source, improving subcontractors’ cash flow and reducing administrative work related to tax deductions. This status makes tax processes easier for both contractors and subcontractors and improves working relationships with contractors by ensuring full payment without tax deductions
How to Apply for Gross Payment Status under the Construction Industry Scheme (CIS) Read More »
The Construction Industry Scheme (CIS) sets out how tax is managed for subcontractors working in construction across the UK. Under CIS,contractors are required to withhold tax from subcontractor payments and send it to HMRC. The scheme is designed to reduce tax evasion and improve overall tax compliance in the sector. If you’re a subcontractor, knowing how CIS tax rates apply to you is crucial. It can help you avoid paying too much or too little tax and give you more control over your cash flow and financial planning.
CIS Tax Rates Explained for UK Subcontractors Read More »
The Construction Industry Scheme (CIS) is a tax scheme in the UK that applies to contractors and subcontractors in the construction industry. If you’re a subcontractor, tax and National Insurance contributions (NICs) may have been deducted from your payments. But, if too much tax has been taken, you might be eligible for a refund. Both individual and company subcontractors can claim this refund, but they must meet certain conditions and follow the correct process.
How to Claim a CIS Refund for Individual and Company Subcontractors Read More »
The VAT reverse charge, introduced in 2021, changes how VAT is managed in the construction industry by making the customer responsible for reporting and paying VAT directly to HMRC. This measure aims to reduce VAT fraud and ensure fairness in the system. It is important for businesses in the sector to understand when the rule applies and its impact on their operations.In this article, we explain how the VAT reverse charge works, its application, and its effects on subcontractors and contractors, along with practical compliance tips.
How the VAT Reverse Charge Works in the Construction Sector Read More »
VAT (Value Added Tax) plays a crucial role in the operations of construction companies in the UK. Whether it’s building new homes, converting non-residential buildings, or renovating properties, understanding how VAT applies to your business activities can save time, reduce costs, and ensure compliance with HMRC regulations. This article will cover everything construction companies need to know about VAT, from registration thresholds to reclaiming VAT on materials.
The Ultimate Guide to VAT for Construction companies in the UK Read More »
