V CONTRACT LTD enables businesses save time and money by providing contracting solutions, which help eliminate both tax and employment risk, while remaining totally CIS compliant.
For the purposes of the CIS, quite a number of trades and disciplines are considered construction operations. These include:
- site preparation
- general construction – bricklaying, roofing, plastering and so on
- alterations and extensions
- plant operation
- repairs and refurbishment
- dismantling work
For more information on the types of work covered by CIS, look for HMRC’s CIS340 booklet or visit their website: www.hmrc.gov.uk.
Also known as a tax deduction scheme; the CIS Scheme is exclusive to ‘self-employed’ subcontractors who are registered with the HMRC, and working within the construction industry. As long as you fall within the definitive term of subcontractor under the Construction Industry Scheme (CIS), you could be entitled to the benefits under CIS.
All subcontractors in the construction industry have had to register with HMRC and obtain a Unique Tax Reference number under the CIS scheme since April of 2007. The amount in tax to be deducted is determined by the UTR and represents payment towards your annual tax liability.
While businesses in the construction industry may be partnerships, self-employed individuals or companies; they are generally known a “contractors” and “subcontractors”.