If you are registered with HMRC as a contractor then every month you must file a Construction Industry Scheme (CIS) Return.  The CIS Return confirms which sub-contractors you have paid in the previous month and how much CIS tax was deducted.  You then need to pay over the total CIS deducted to HMRC by 19^th of the following month.

Note that CIS tax is only deducted from the labour element of a sub-contractor’s invoice, therefore if they have charged you for materials or VAT these elements are removed before your CIS tax calculation is made.

Failure to submit a CIS Return will result in a £100 penalty from HMRC, therefore it is important that you complete this task, even if no sub-contractors have been paid, in which case you should file a Nil Return.

Aspire Accountancy can help calculate your monthly CIS returns, saving you the trouble. We can also verify new subcontractors on your behalf, and help manage your CIS documentation.