Q: What is the difference between a contractor and a subcontractor?

You must r egister as a contractor if either: you pay subcontractors for construction work your business does not do construction work but you have spent more than £3 million on construction in the 12 months since you made your first payment If you do construction work for a contractor then you will need to register as a subcontractor .

Q: How do I contact HMRC about the Construction Industry Scheme (CIS)?

Depending on whether you are a contractor or subcontractor , you need provide different information when you contact HMRC. In our blog post , we detail the information you need and the various methods of contacting the HRMC about your CIS account.

Question 1

What is the Contruction Industry Scheme (CIS)?

wearelens · Accepted Answer

In the Construction Industry Scheme (CIS), contractors deduct money from subcontractors' payments and pass it on to HM Revenue and Customs (HMRC). Subcontractor deductions count as advance payments towards the subcontractor's taxes and NI.

Contractors must register for the scheme. Subcontractors are not required to register, but if they aren't, deductions are taken from their payments at a higher rate.

Question 2

What is the difference between a contractor and a subcontractor?

wearelens · Accepted Answer

You must register as a contractor if either:

you pay subcontractors for construction work
your business does not do construction work but you have spent more than £3 million on construction in the 12 months since you made your first payment

If you do construction work for a contractor then you will need to register as a subcontractor .

Question 3

What types of work are covered by the Construction Industry Scheme (CIS) ?

wearelens · Accepted Answer

The Construction Industry Scheme (CIS) covers most construction work to buildings, including site preparation, decorating and refurbishment.

For a full list, read our blog post "What types of work are covered by the Construction Industry Scheme (CIS) ?"

Question 4

What to do if your business is based outside of the UK

wearelens · Accepted Answer

The same CIS rules apply if your business is based outside the UK, CIS rules apply if your business is not based in the UK, but you perform construction work as a contractor or subcontractor in the UK.

For more information about registering and paying tax, click here.

Question 5

What is a CIS Accountant and How Can They Help Me?

wearelens · Accepted Answer

A CIS Accountant is a specialized financial professional with a deep understanding of the Construction Industry Scheme and the unique tax challenges it presents.

To find out more, read our detailed blog post on the subject.

Question 6

Common mistakes when dealing with Construction Industry Scheme (CIS)

wearelens · Accepted Answer

As CIS accountants, we help you to navigate the complexities of the Construction Industry Scheme (CIS) on your behalf. We understand the mistakes that can be made when dealing with the HMRC.

In our blog post, we deal with the common mistakes and how to avoid them.

Question 7

How do I contact HMRC about the Construction Industry Scheme (CIS)?

wearelens · Accepted Answer

Depending on whether you are a contractor or subcontractor, you need provide different information when you contact HMRC. In our blog post, we detail the information you need and the various methods of contacting the HRMC about your CIS account.

What is the CIS? Guide to the Construction Industry Scheme