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What is a CIS Tax Return?

Under the Construction Industry Scheme (CIS), contractors deduct money from the subcontractor’s payments and pass this to HMRC to pay towards their tax and national insurance costs. 


Contractors must register for CIS but for subcontractors it’s not a necessity. If subcontractors don’t register, deductions are taken at a higher rate. This would mean the subcontractor would face deductions of 30% CIS Tax rather than 20% CIS Tax if they were registered onto the Construction Industry Scheme with HMRC. If you are a subcontractor and would like to register for CIS with HMRC, you can do so by calling HMRC on 0300 200 3210, take option 2 then option 4, you must have your UTR Number to be able to register for CIS.

CIS covers most construction work to either a permanent/temporary building and civil engineering work like roads/bridges. The same CIS rules apply if your business is based outside the UK, but you do construction work as a contractor or subcontractor in the UK.

We can help with all your CIS needs from payroll for subcontractors to CIS Tax Returns, get in touch to see how Ultra Tax Ltd can help you and your team.

A CIS Tax Return for a subcontractor is a Self-Assessment Tax Return, declaring your income from contractors, as well as the CIS deductions faced, and any allowable expenses. In some cases, subcontractors will receive a Tax Rebate, however some subcontractors will still owe further Tax. This is because if they have been facing CIS deductions at 20%, but have hit the higher tax threshold, there would still be outstanding tax due to be paid to HMRC.

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