CIS stands for ‘Construction Industry Scheme’. This is a set of rules that HMRC have set up especially for the construction industry. They deal with payments made by contractors to subcontractors for construction work.
If your company works with people in the construction business, then it may need to register with HMRC under CIS. The Scheme applies to contractors, subcontractors and any organisations that spend a lot of money on construction, even if construction is not their main industry. It covers groups such as builders, gangmasters, foremen, property developers, labour agencies and staff bureaus.
Different rules apply to contractors and subcontractors, and within each category there are separate terms relating to self-employed workers, limited companies and LLPs. When you apply you need to make it clear which category you fall into.
This sounds complex, but it doesn’t need to be.
Senigpay can help smooth the process for you with a CIS solution through our umbrella company. We have also registered Senigpay for gross payment status with HMRC. Everything and everyone will be dealt with correctly and compliantly when they pass through our office.