CIS contractors and CIS sub-contractors - Revision history

Editor at 17:05, 25 February 2021

2021-02-25T17:05:03Z

← Older revision		Revision as of 17:05, 25 February 2021
Line 50:		Line 50:

	* Construction Industry Scheme.		* Construction Industry Scheme.
		+	* Construction Industry Scheme or IR35?
	* Contractor.		* Contractor.
	* Sole trader.		* Sole trader.

Designing Buildings at 07:33, 26 October 2020

2020-10-26T07:33:45Z

← Older revision		Revision as of 07:33, 26 October 2020
Line 47:		Line 47:
	This page was created by:--[[User:Martinc\|Martinc]] 17:59, 19 June 2013 (BST)		This page was created by:--[[User:Martinc\|Martinc]] 17:59, 19 June 2013 (BST)

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki: =
−		+
−	=== Related articles on Designing Buildings Wiki: ===	+

	* Construction Industry Scheme.		* Construction Industry Scheme.
Line 59:		Line 57:
	* Works contractor.		* Works contractor.

−	=== External references: ===	+	= External references: =

	* HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].		* HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].
	* Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].		* Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].

−	[[Category:Taxation]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Organisation]] [[Category:Taxation]]

Editor: Reverted edits by PaulCooper (talk) to last revision by Designing Buildings

2020-05-05T13:31:02Z

Reverted edits by PaulCooper (talk) to last revision by Designing Buildings

← Older revision		Revision as of 13:31, 5 May 2020
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	= Introduction =		= Introduction =

−	The Construction Industry Scheme (CIS) sets out a series of rules for how contractors should make payments to sub-contractors. The scheme was introduced to try and prevent the loss of revenue to the exchequer arising from payments between contractors not being properly accounted for tax purposes	+	The Construction Industry Scheme (CIS) sets out a series of rules for how contractors should make payments to sub-contractors. The scheme was introduced to try and prevent the loss of revenue to the exchequer arising from payments between contractors not being properly accounted for for tax purposes

−	For the purposes of the CIS, the terms contractors and sub-contractors have very specific meanings. These are terms that are widely used within the building industry but for the purposes of the CIS, it is important that the specific meanings are clearly understood as they have direct relevance to the manner in which payments between parties may be made and the associated tax treatment of those payments.	+	For the purposes of the CIS the terms contractors and sub-contractors have very specific meanings. These are terms that are widely used within the building industry but for the purposes of the CIS it is important that the specific meanings are clearly understood as they have direct relevance to the manner in which payments between parties may be made, and the associated tax treatment of those payments.

−	In this article, they are referred to as CIS contractors and CIS ~~subcontractors~~.	+	In this article they are referred to CIS contractors and CIS sub-contractors.

	= CIS contractors =		= CIS contractors =
Line 20:		Line 20:
	* Any businesses that undertake construction operations and pay others for work carried out.		* Any businesses that undertake construction operations and pay others for work carried out.
	* Any property developers or speculative builders erecting and altering buildings in order to make a profit.		* Any property developers or speculative builders erecting and altering buildings in order to make a profit.
−	* Gang-leaders organising construction labour (although gang-leaders may also be a CIS sub-~~contractors~~)	+	* Gang-leaders organising construction labour (although gang-leaders may also be a CIS sub-ontractors)
	* Foreign businesses carrying out construction work in the UK.		* Foreign businesses carrying out construction work in the UK.

Line 34:		Line 34:
	= CIS sub-contractors =		= CIS sub-contractors =

−	This term describes a person or body that has agreed to carry out construction operations for a contractor. This may involve the CIS sub-~~contractor~~:	+	This term describes a person or body that has agreed to carry out construction operations for a contractor. This may involve the CIS sub-ontractor:

	* Carrying out the operations themselves, or;		* Carrying out the operations themselves, or;
Line 63:		Line 63:
	* HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].		* HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].
	* Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].		* Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].
−	* Payroll Heaven: [https://payrollheaven.com/cis-returns-service/ CIS Returns]

	[[Category:Taxation]]		[[Category:Taxation]]

PaulCooper at 10:31, 5 May 2020

2020-05-05T10:31:50Z

← Older revision		Revision as of 10:31, 5 May 2020
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	= Introduction =		= Introduction =

−	The Construction Industry Scheme (CIS) sets out a series of rules for how contractors should make payments to sub-contractors. The scheme was introduced to try and prevent the loss of revenue to the exchequer arising from payments between contractors not being properly accounted ~~for~~ for tax purposes	+	The Construction Industry Scheme (CIS) sets out a series of rules for how contractors should make payments to sub-contractors. The scheme was introduced to try and prevent the loss of revenue to the exchequer arising from payments between contractors not being properly accounted for tax purposes

−	For the purposes of the CIS the terms contractors and sub-contractors have very specific meanings. These are terms that are widely used within the building industry but for the purposes of the CIS it is important that the specific meanings are clearly understood as they have direct relevance to the manner in which payments between parties may be made, and the associated tax treatment of those payments.	+	For the purposes of the CIS, the terms contractors and sub-contractors have very specific meanings. These are terms that are widely used within the building industry but for the purposes of the CIS, it is important that the specific meanings are clearly understood as they have direct relevance to the manner in which payments between parties may be made and the associated tax treatment of those payments.

−	In this article they are referred to CIS contractors and CIS ~~sub-contractors~~.	+	In this article, they are referred to as CIS contractors and CIS subcontractors.

	= CIS contractors =		= CIS contractors =
Line 20:		Line 20:
	* Any businesses that undertake construction operations and pay others for work carried out.		* Any businesses that undertake construction operations and pay others for work carried out.
	* Any property developers or speculative builders erecting and altering buildings in order to make a profit.		* Any property developers or speculative builders erecting and altering buildings in order to make a profit.
−	* Gang-leaders organising construction labour (although gang-leaders may also be a CIS sub-~~ontractors~~)	+	* Gang-leaders organising construction labour (although gang-leaders may also be a CIS sub-contractors)
	* Foreign businesses carrying out construction work in the UK.		* Foreign businesses carrying out construction work in the UK.

Line 34:		Line 34:
	= CIS sub-contractors =		= CIS sub-contractors =

−	This term describes a person or body that has agreed to carry out construction operations for a contractor. This may involve the CIS sub-~~ontractor~~:	+	This term describes a person or body that has agreed to carry out construction operations for a contractor. This may involve the CIS sub-contractor:

	* Carrying out the operations themselves, or;		* Carrying out the operations themselves, or;
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	* HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].		* HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].
	* Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].		* Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].
		+	* Payroll Heaven: [https://payrollheaven.com/cis-returns-service/ CIS Returns]

	[[Category:Taxation]]		[[Category:Taxation]]

Designing Buildings at 05:40, 25 June 2018

2018-06-25T05:40:47Z

← Older revision		Revision as of 05:40, 25 June 2018
Line 56:		Line 56:
	* Sub-contractor.		* Sub-contractor.
	* Trade contractor.		* Trade contractor.
		+	* Types of contractor.
	* Works contractor.		* Works contractor.

Editor at 18:45, 15 December 2017

2017-12-15T18:45:58Z

← Older revision		Revision as of 18:45, 15 December 2017
Line 1:		Line 1:
−
	= Introduction =		= Introduction =

Line 11:		Line 10:

	Under the CIS there are two groups of contractors:		Under the CIS there are two groups of contractors:
−	*Mainstream contractors	+
−	*Deemed contractors	+	* Mainstream contractors
		+	* Deemed contractors

	== Mainstream contractors ==		== Mainstream contractors ==

	These include:		These include:
−	*Any businesses that undertake construction operations and pay others for work carried out.	+
−	*Any property developers or speculative builders erecting and altering buildings in order to make a profit.	+	* Any businesses that undertake construction operations and pay others for work carried out.
−	*Gang-leaders organising construction labour (although gang-leaders may also be a CIS sub-ontractors)	+	* Any property developers or speculative builders erecting and altering buildings in order to make a profit.
−	*Foreign businesses carrying out construction work in the UK.	+	* Gang-leaders organising construction labour (although gang-leaders may also be a CIS sub-ontractors)
		+	* Foreign businesses carrying out construction work in the UK.

	== Deemed contractors ==		== Deemed contractors ==

	The CIS also identifies entities that are deemed to be contractors. These may be public bodies or other concerns who carry out or commission construction activities. Such entities are deemed to be contractors in the following circumstances:		The CIS also identifies entities that are deemed to be contractors. These may be public bodies or other concerns who carry out or commission construction activities. Such entities are deemed to be contractors in the following circumstances:
−	*Their average annual expenditure on construction operations in the period of three years ending on the last accounting date exceeds £1 million.	+
−	*If they have not been trading for the whole of the last three years they will be deemed to be contractors if their total expenditure on construction activities for that part of the three year period during which they have traded exceeds £3 million.	+	* Their average annual expenditure on construction operations in the period of three years ending on the last accounting date exceeds £1 million.
		+	* If they have not been trading for the whole of the last three years they will be deemed to be contractors if their total expenditure on construction activities for that part of the three year period during which they have traded exceeds £3 million.

	Any concern that is deemed to be a contractor because one of the above conditions is met will continue to be treated as such until construction expenditure reduces to less than £1 million for three successive years.		Any concern that is deemed to be a contractor because one of the above conditions is met will continue to be treated as such until construction expenditure reduces to less than £1 million for three successive years.
Line 33:		Line 35:

	This term describes a person or body that has agreed to carry out construction operations for a contractor. This may involve the CIS sub-ontractor:		This term describes a person or body that has agreed to carry out construction operations for a contractor. This may involve the CIS sub-ontractor:
−	*Carrying out the operations themselves, or;	+
−	*Having the work done by other CIS sub-contractors.	+	* Carrying out the operations themselves, or;
		+	* Having the work done by other CIS sub-contractors.

	Such CIS sub-contractors may be companies, self-employed persons, public bodies, foreign businesses or gang-leaders. Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS sub-contractor.		Such CIS sub-contractors may be companies, self-employed persons, public bodies, foreign businesses or gang-leaders. Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS sub-contractor.

−	----	+	-----
		+	NB: In June 2014, the government launched a [https://www.gov.uk/government/consultations/improving-the-operation-of-the-construction-industry-scheme-cis consultation] into ways to improve the CIS by reducing the administrative burden it imposes. Some people within the industry have called for the scheme to be scrapped. Ref. Construction Enquirer [http://www.constructionenquirer.com/2014/07/11/calls-grow-to-scrap-cis-tax-scheme/ Calls grow to scrap CIS tax scheme] 11 July 2014.

−	~~NB In June 2014, the government launched a [https://www.gov.uk/government/consultations/improving~~-~~the~~-~~operation~~-of-~~the~~-construction-industry-scheme-cis consultation] into ways to improve the CIS by reducing the administrative burden it imposes. Some people within the industry have called for the scheme to be scrapped. Ref Construction Enquirer [http://www.constructionenquirer.com/2014/07/11/calls-grow-to-scrap-cis-tax-scheme/ Calls grow to scrap CIS tax scheme] 11 July 2014.	+	-----
−		+	This page was created by:--[[User:Martinc\|Martinc]] 17:59, 19 June 2013 (BST)
−	~~----~~	+
−		+
−	This page was created by:--[[User~~%3AMartinc~~\|Martinc]] 17:59, 19 June 2013 (BST)	+

	= Find out more =		= Find out more =

	=== Related articles on Designing Buildings Wiki: ===		=== Related articles on Designing Buildings Wiki: ===
−	*Construction Industry Scheme.	+
−	*Contractor.	+	* Construction Industry Scheme.
−	*Sub-contractor.	+	* Contractor.
−	*Trade contractor.	+	* Sole trader.
−	*Works contractor.	+	* Sub-contractor.
		+	* Trade contractor.
		+	* Works contractor.

	=== External references: ===		=== External references: ===
−	*HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].	+
−	*Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].	+	* HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].
		+	* Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].

	[[Category:Taxation]]		[[Category:Taxation]]

Designing Buildings at 07:56, 11 July 2014

2014-07-11T07:56:43Z

← Older revision		Revision as of 07:56, 11 July 2014
Line 37:		Line 37:

	Such CIS sub-contractors may be companies, self-employed persons, public bodies, foreign businesses or gang-leaders. Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS sub-contractor.		Such CIS sub-contractors may be companies, self-employed persons, public bodies, foreign businesses or gang-leaders. Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS sub-contractor.
		+
		+	----
		+
		+	NB In June 2014, the government launched a [https://www.gov.uk/government/consultations/improving-the-operation-of-the-construction-industry-scheme-cis consultation] into ways to improve the CIS by reducing the administrative burden it imposes. Some people within the industry have called for the scheme to be scrapped. Ref Construction Enquirer [http://www.constructionenquirer.com/2014/07/11/calls-grow-to-scrap-cis-tax-scheme/ Calls grow to scrap CIS tax scheme] 11 July 2014.

	----		----
Line 52:		Line 56:

	=== External references: ===		=== External references: ===
−	*HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].	+	*HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].
	*Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].		*Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].

	[[Category:Taxation]]		[[Category:Taxation]]

Designing Buildings: moved CIS Contractors and CIS Sub - Contractors to CIS contractors and CIS sub-contractors

2013-06-20T07:16:55Z

moved CIS Contractors and CIS Sub - Contractors to CIS contractors and CIS sub-contractors

← Older revision

Revision as of 07:16, 20 June 2013

Designing Buildings at 07:16, 20 June 2013

2013-06-20T07:16:14Z

← Older revision		Revision as of 07:16, 20 June 2013
Line 1:		Line 1:

−	~~'''CIS Contractors and CIS Sub – Contractors'''~~	+	= Introduction =

−	~~For the purposes of the~~ Construction Industry Scheme ~~the terms~~ contractors ~~and~~ sub – contractors ~~have very specific meanings~~. ~~These are terms that are widely used within~~ the ~~building industry but for the purposes~~ of ~~the CIS it is important that the specific meanings are clearly understood as they have direct relevance~~ to the ~~manner in which~~ payments between ~~parties may be made, and the associated~~ tax ~~treatment of those payments.~~	+	The Construction Industry Scheme (CIS) sets out a series of rules for how contractors should make payments to sub-contractors. The scheme was introduced to try and prevent the loss of revenue to the exchequer arising from payments between contractors not being properly accounted for for tax purposes

−	~~So for~~ the purposes of ~~this article I shall refer to~~ CIS ~~Contractors~~ and CIS ~~Sub – Contractors~~.	+	For the purposes of the CIS the terms contractors and sub-contractors have very specific meanings. These are terms that are widely used within the building industry but for the purposes of the CIS it is important that the specific meanings are clearly understood as they have direct relevance to the manner in which payments between parties may be made, and the associated tax treatment of those payments.

−	~~'''~~CIS ~~Contractors'''~~	+	In this article they are referred to CIS contractors and CIS sub-contractors.

−	~~Under the~~ CIS ~~there are two groups of~~ contractors	+	= CIS contractors =

−	~~'''~~Mainstream ~~Contractors'''~~	+	Under the CIS there are two groups of contractors:
		+	*Mainstream contractors
		+	*Deemed contractors
		+
		+	== Mainstream contractors ==

	These include:		These include:
−	*Any businesses that ~~include~~ construction operations and pay others for work carried out.	+	*Any businesses that undertake construction operations and pay others for work carried out.
	*Any property developers or speculative builders erecting and altering buildings in order to make a profit.		*Any property developers or speculative builders erecting and altering buildings in order to make a profit.
−	*Gang – leaders organising construction labour. (although gang – leaders may also be a CIS ~~Sub – Contractor~~)	+	*Gang-leaders organising construction labour (although gang-leaders may also be a CIS sub-ontractors)
−	*Foreign businesses carrying out construction work in the ~~U.K~~.	+	*Foreign businesses carrying out construction work in the UK.

−	~~'''~~Deemed ~~Contractors'''~~	+	== Deemed contractors ==

	The CIS also identifies entities that are deemed to be contractors. These may be public bodies or other concerns who carry out or commission construction activities. Such entities are deemed to be contractors in the following circumstances:		The CIS also identifies entities that are deemed to be contractors. These may be public bodies or other concerns who carry out or commission construction activities. Such entities are deemed to be contractors in the following circumstances:
		+	*Their average annual expenditure on construction operations in the period of three years ending on the last accounting date exceeds £1 million.
		+	*If they have not been trading for the whole of the last three years they will be deemed to be contractors if their total expenditure on construction activities for that part of the three year period during which they have traded exceeds £3 million.

−	~~Their average annual expenditure on construction operations in the period~~ of ~~three years ending on~~ the ~~last accounting date exceeds~~ £1 million.	+	Any concern that is deemed to be a contractor because one of the above conditions is met will continue to be treated as such until construction expenditure reduces to less than £1 million for three successive years.

−	~~If they have not been trading for the whole of the last three years they will be deemed to be~~ contractors ~~if their total expenditure on construction activities for that part of the three year period during which they have traded exceeds £3 million.~~	+	= CIS sub-contractors =

−	~~Any concern~~ that ~~is deemed~~ to be a contractor ~~because one of~~ the ~~above conditions is met will continue~~ to be treated as ~~such until construction expenditure reduces to less than £1 million for three successive years~~.	+	This term describes a person or body that has agreed to carry out construction operations for a contractor. This may involve the CIS sub-ontractor:
		+	*Carrying out the operations themselves, or;
		+	*Having the work done by other CIS sub-contractors.
		+
		+	Such CIS sub-contractors may be companies, self-employed persons, public bodies, foreign businesses or gang-leaders. Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS sub-contractor.
		+
		+	----

−	~~'''CIS Sub – Contractors'''~~	+	This page was created by:--[[User%3AMartinc\|Martinc]] 17:59, 19 June 2013 (BST)

−	~~This term describes a person or body that has agreed to carry~~ out ~~construction operations for a contractor. This may involve the CIS Sub – contractor~~	+	= Find out more =
−	*Carrying out the operations themselves, or	+
−	*Having the work done by other CIS Sub – Contractors	+

−	~~Such CIS Sub – Contractors may be companies, self – employed persons, public bodies, foreign businesses or gang – leaders~~. ~~Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS Sub –~~ Contractor.	+	=== Related articles on Designing Buildings Wiki: ===
		+	*Construction Industry Scheme.
		+	*Contractor.
		+	*Sub-contractor.
		+	*Trade contractor.
		+	*Works contractor.

−	~~This page was created by~~:--[~~[User~~:~~Martinc\|Martinc~~]~~] 17~~:~~59, 19 June 2013 (BST)~~	+	=== External references: ===
		+	*HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme].
		+	*Cantor Atkin: [http://www.cantoratkin.co.uk/ CIS Scheme assistance].

	[[Category:Taxation]]		[[Category:Taxation]]

Martinc at 16:59, 19 June 2013

2013-06-19T16:59:34Z

← Older revision		Revision as of 16:59, 19 June 2013
Line 35:		Line 35:

	Such CIS Sub – Contractors may be companies, self – employed persons, public bodies, foreign businesses or gang – leaders. Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS Sub – Contractor.		Such CIS Sub – Contractors may be companies, self – employed persons, public bodies, foreign businesses or gang – leaders. Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS Sub – Contractor.
		+
		+	This page was created by:--[[User:Martinc\|Martinc]] 17:59, 19 June 2013 (BST)

	[[Category:Taxation]]		[[Category:Taxation]]