This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Construction industry scheme: What is tax-deductible?

Shared from Tax Insider: Construction industry scheme: What is tax-deductible?
By Tim Palmer, December 2023

Tim Palmer outlines the construction industry scheme tax obligations placed on a contractor to withhold the correct amount of tax when paying a net registered subcontractor. 

Contractors in the construction industry have big regular construction industry scheme (CIS) tax obligations and responsibilities. A contractor will have to get relevant financial and fiscal details regarding the subcontractor they plan to use to carry out construction work. The contractor will then have to ‘verify’ them. This means going online, submitting the appropriate details to HMRC, and waiting for a decision from HMRC as to how to pay them.  

HMRC will instruct the contractor to pay the subcontractor in one of three ways: 

  • gross; 

  • net of 20% CIS tax deducted if the subcontractor is ‘registered net’ with HMRC; or 

  • deduct 30% CIS tax if the

This is one of our 2523 Premium articles

To see this article in full and unlock access to our complete library of 2523 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee