Contractors IR35 & CIS

We can advise on the advantages and disadvantages of contracting. We offer comprehensive accounting and tax services for contractors.

We can incorporate your business and prepare and file your year-end accounts. We will help you to deal with VAT for your business and complete your tax returns. We will advise you on how to draw money from your business in the most tax-efficient manner, whenever you need it. We can take care of your payroll and RTI and help you to keep track of expenses.

We will give you a definitive picture of your employment status in relation to IR35 and review your contract to offer the best advice.

If you are a construction contractor you will probably have to register under HMRC’s Construction Industry Scheme (CIS). We can streamline the entire process for you.

Does IR35 apply to CIS contractors?

Yes, IR35 can apply to CIS (Construction Industry Scheme) contractors. IR35 is a tax legislation that assesses the employment status of contractors working through intermediaries like personal service companies. If a CIS contractor falls within IR35 rules, they may be considered an employee for tax purposes and subject to different tax treatment.

Do contractors have to be CIS registered?

Yes, contractors operating within the construction industry in the UK must register for the Construction Industry Scheme (CIS) with HM Revenue and Customs (HMRC). Being CIS registered allows contractors to follow the necessary procedures for deducting and submitting payments to subcontractors under the scheme.

Does a contractor have to deduct CIS?

Yes, if a contractor is registered under the Construction Industry Scheme (CIS) in the UK, they have a legal obligation to deduct CIS from payments made to subcontractors. The deducted amount is then sent directly to HM Revenue and Customs (HMRC) as an advance payment towards the subcontractor’s tax and National Insurance contributions.

Does IR35 apply to subcontractors?

Yes, IR35 can apply to subcontractors in the UK. Subcontractors working through intermediaries, such as personal service companies, are subject to the same IR35 rules as other contractors. They must assess their working arrangements with the end client to determine their IR35 status and comply with the appropriate tax regulations.

Do subcontractors pay CIS?

Subcontractors working in the UK construction industry are subject to the Construction Industry Scheme (CIS). However, subcontractors themselves do not pay CIS. Instead, contractors deduct CIS from the payments they make to subcontractors and submit it to HM Revenue and Customs (HMRC) as an advance payment towards the subcontractor’s tax and National Insurance contributions.