It is essential that businesses which operate within the Construction Industry Scheme (CIS) do so effectively in order to avoid potential pitfalls. This course explains the CIS in detail, from the time that the contracting organisation engages a subcontractor, to making payments to the subcontractor. It is completely up to date with the recent changes that HMRC have made to the CIS.
In addition to dealing with the administration of the scheme, attendees will receive practical advice on how to manage the typical issues that they will encounter with subcontractors. To reinforce the learning and consolidate your knowledge, there are interactive sessions which look at case studies and exercises relating to the scheme.
This course will explain, step by step...
- Which businesses must register as a CIS contractor
- What you need to do to register as a contractor and sub-contractor
- How a contractor establishes whether a sub-contractor is registered for the scheme
- What types of works are within and outside the scope of the CIS?
- Deciding whether tax should be deducted from a payment and, if so, at what rate
- How to make CIS deductions and pay them over to HMRC
- Completing and filing monthly CIS returns
- The records you must keep
The CIS has wide ranging implications for any type of business that operates within the construction sector or who get involved in construction works. The CIS will impact on anyone that is involved in organising works to be undertaken, engaging subcontractors, agreeing contracts, procurement, approving invoices as well as finance and tax teams.
The scope of the CIS
- Does my organisation have to register as a contractor under the scheme?
- What types of businesses are treated as ‘mainstream’ contractors?
- If my organisation is not involved in construction how might it be considered a ‘deemed’ contractor?
- What is ‘multiple contractor status’?
- Who are treated as subcontractors?
- What about overseas suppliers (contractors and/or subcontractors)?
- What types of works are within and outside the scope of the CIS?
- How does the CIS interact with employment status and the off-payroll working rules?
The mechanics of the CIS
- How do I check whether a person should be treated as an ‘employee’ rather than a ‘subcontractor’?
- How do I check whether a subcontractor is registered for the CIS?
- How do I verify that a subcontractor is registered with the CIS?
- What should I do if I believe that a supplier should be registered as a subcontractor with the scheme but is not?
- What determines the amount of tax that should be deducted from a payment to a subcontractor?
- How do I make deductions from sub-contractors payments and pay them over to HMRC?
- When do we pay the deductions over to HMRC?
- How do I complete and file the monthly CIS returns?
- What records must we keep?
Consequences of getting it wrong
- What are the penalties that HMRC could seek to impose?
- Under what circumstance may we have to pay interest and penalties over to HMRC?
- What should I do if I disagree with a penalty?
