If you work in the Construction Industry you may be a:
• Or both
Contractors and Subcontractors can be self-employed individuals, partnerships or companies. Construction Industry Scheme CIS, sets out the rules for how contractors make payments to subcontractors for construction work.
Work covered by CIS:
CIS covers most construction work to:
• a permanent or temporary building or structure
• civil engineering work like roads and bridges
For the purpose of CIS, construction work includes:
• preparing the site, e.g. laying foundations and providing access works
• demolition and dismantling
• building work
• alterations, repairs and decorating
• installing systems for heating, lighting, power, water and ventilation
• cleaning the inside of buildings after construction work
To check if the work you are doing is covered by the CIS there is more guidance in the CIS340
• Keep good records for 3 years after the end of the tax year of the gross amount of each payment invoiced by subcontractors, excluding VAT. Any deductions you’ve made from subcontractor payments, including records of costs of materials the subcontractor invoiced you for, excluding VAT.
Why not join or watch an HMRC webinar to find out more about the Construction Industry.