Payroll for essential people

Payroll for the Construction Industry

Payroll for the Construction Industry

Essential Payroll has extensive experience processing both CIS ‘Suffered’ and ‘Deducted’. We can also verify subcontractors and make nil submissions as required.

If you are a new contractor or sub-contractor we can help with registration with HMRC and also aid with developing your own internal processes for communication with contractors or sub-contractors and CIS.

CIS in a nutshell

The Construction Industry Scheme (CIS) was implemented by HMRC as a means for contractors to calculate and collect subcontractor tax on behalf of HMRC. It benefits HMRC as it is a monthly process and therefore tax that was previously collected from subcontractors via self-assessment is now done monthly via CIS. It works in a similar way to PAYE with tax codes determining taxation rates.

The two types of CIS are ‘Suffered’ and ‘Deducted’.

CIS ‘Suffered’ is tax that has been deducted from a subcontractor’s invoice to a contractor. If the subcontractor is an employer, the deduction is offset against any monthly PAYE liability the subcontractor has. It is submitted to HMRC in the form of an EPS. If the subcontractor does not run a PAYE scheme and is self-employed the taxation is offset against any self-assessment liability.

CIS ‘Deducted’ is the tax that has been applied by the contractor to a subcontractor’s invoice. The contractor calculates and collects this via CIS. The cumulative CIS tax for all subcontractors during the tax month is submitted to HMRC each month via an EPS.

Contact our payroll experts

Let us relieve you of your payroll obligations so that your organisation can continue to focus on its core business. We offer a full range of payroll services and have worked alongside a number of clients in the construction industry. You won’t regret making us your payroll partnercontact us today on 02382 023223.

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