Why you need a Specialist CIS Accountant
The Construction Industry Scheme (CIS) is the Government tax scheme that creates specific tax rules that apply to subcontractors working in the construction industry and how payments to them must be handled by contractors.
This is an area our team of specialist CIS accountants is very familiar with and we have worked in the the sector for the last decade. We help dozens of subcontractors with their tax matters and would be happy to talk you through what is required.
What does a CIS Accountant Do?
Under the Construction Industry Scheme ( CIS ), contractors deduct money from a subcontractor's payments and pass it to HM Revenue and Customs ( HMRC ). The deductions count as advance payments towards the subcontractor's tax and National Insurance. Contractors must register for the scheme.
Our team will provide practical advice and solutions to a range of accounting and business activities you will need to undertake either as a Contractor or Sub-Contractor under the CIS scheme. It can be a complicated piece of legislation to understand, particularly if you are just joining it, so it is important to know the right steps to take.
Our areas of expertise include:
Accounting Services for Contractors
Contractors have an entirely different set of financial planning and accounting needs compared to other businesses. This is because contractors are subject to a wide range of complicated rules and legislation, both local and national. Failing to follow these rules can lead to fines and other financial penalties but following them correctly can lead to a boost in finances.
Services we can provide include
- Registering your business as a Contractor with HMRC
- Verifying your subcontractors with HMRC
- Making sure your payments to subcontractors are correct and follow the CIS rules
- Send subcontractors their deduction statements
- Ensure all of your monthly records are up to date with HMRC
Tax returns and monthly accounting
Failing to submit your tax returns and monthly figures to HMRC is likely to lead to financial penalties. To avoid this our team will ensure all of your returns are correct and submitted on time. We will work with you to ensure any queries from HMRC are dealt with promptly and efficiently.
If there any changes to the CIS legislation we will implement these for you to make sure your accounting system is compliant.
Accounting Services for Subcontractors
As a sub-contractor, you are required to register with HMRC as one. You must also keep HMRC informed of any changes to your business including things like changes to your business address, your business name, who your business partners are and any other relevant information.
We can help you with the following services specifically for subcontractors:
- Confirm your status to HMRC either as a subcontractor or as an employee. It is possible to be both in certain circumstances.
- Work with your contractor to ensure you are verified as such for them.
- Keep all of your accounting and business records up to date.
- Complete and submit your self assessment tax returns each year and deal with any liabilities and refunds due.
Our Construction Industry Specialists Can Help You with Changing Legislation
With new regulations seemingly being introduced every month, a specialist construction industry accountant will be able to keep you up-to-date with the latest legislation.
Our team of accountants will always be in a position to inform you about any updates that you the contractor or subcontractor must know about and how they are likely to impact your business. By keeping abreast of future changes to legislation we can advise you well in advance of their introduction how best to change your business to maximise any benefits they may have and minimise any negative areas.
Your Accounts are Always Up to Date
Accurate accounting records are of course essential to all types of business but for the CIS scheme members, tracking the the details can be time consuming and confusing. As CIS accounting professionals, we already deal with dozens of contractors and subcontractors and have the systems in place to ensure your accounting is both accurate and up to date.
CIS Accountants Reduce Your Workload
Accounting involves a lot of different tasks, which are often repetitive and time-consuming. Thankfully, we are well-versed in all of these and can handle your accounting and day to day management. This reduces a lot of the accounting workload which you as a contractor or sub-contractor must produce.
We are familiar with a range of accounting software including Sage, Xero and QuickBooks.
Looking After Your Tax Deductions
We work with subcontractors to determine if they are an employee and covered by the PAYE scheme under their contract or if they are a subcontractor and covered by the CIS scheme. In this case you will receive payment Under Deduction from your contractor.
Construction Accountants Help Subcontractors Save on Taxes
Many subcontractors are unfamiliar with the tax rules that apply to them. It is a complex and ever changing set of rules and regulations and one that we spend a great deal of time understanding and advising on.
We can carry out a tax audit on your existing arrangements to ensure you are structured correctly and taking on the benefits of current UK tax legislation.
MCC Accounts – Expert CIS Accountants in Manchester and the North West
Our tailored construction accounting services for sub-contractors and construction related companies across Manchester, Salford and the North West are fuelled by our expert knowledge and years of experience. We help simplify the complicated and ever-changing dynamics of the sector, including tax and legislation as well as your day-to-day accounting needs.
Whether you are an established business or someone who is planning to become a subcontractor, you are well advised to hire a professional construction industry accountant so you can make the smart choices for your future.
MCC Accountants are just a call away.