Here are some frequently asked questions regarding CIS
Q. What is CIS (Construction Industry Tax Deduction Scheme)?
A. CIS is a scheme developed by HM Revenue & Customs for the construction industry. Contractors and sub-contractors must be registered with the HMRC and hold a UTR (Unique Tax Reference) number. (You can get a detailed booklet from the HMRC called CIS340, Guide to the Construction Industry Scheme).
Q. Who is responsible for paying tax and NI?
A. If you are registered with a UTR number 20% tax will be deducted from your income by us at source. You will be responsible for your weekly Class 2 NI payments and Class 4 at the end of the financial year. Please see www.hmrc.gov.uk/cis
Q. What is the commitment for using your services?
A. Some people use us for a few weeks, some for years. We do not tie anyone down to a fixed contract, we can simply be used as and when payment is required. The service we provide is fully portable, you can take us from contract to contract to handle your payments.
Q. What notice period do I have to give if I want to leave?
A. There is no notice period, just let us know you no longer wish us to receive and process payments on your behalf.