Tax
Register for VAT as a Limited Company
Do you need or want to register for VAT as a limited company? This crucial step can increase your business’s
October 27, 2024
2:14 pm
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Skip to content Let us guide you through the Construction Industry Scheme with ease and precision. Our expert team provides crystal-clear explanations and personalised support, ensuring that your business meets and excels in CIS compliance.
If you run a construction business, it is hard enough managing materials orders, project timelines, contractors and staying on budget. You do not need the hassle of regularly filing complex CIS paperwork. This takes your focus away from progressing jobs and growing your company.
Our easy-to-understand CIS service handles every administrative aspect so you can get back to work stress-free. We implement a quick, straightforward system to collect data for CIS returns. We double-check status verification for subcontractors to guarantee 100% accuracy. Should anything change with VAT rules or material deductions, our experts have you covered with upfront advice.
The CIS scheme applies if you work for a contractor in the construction industry as a self-employed individual. According to CIS guidelines, the contractor must withhold 20% or 30% of its payments to you in tax.
The CIS covers more than building and civil engineering work, such as demolition, site clearance, repairs and decoration, and power system installation. The HMRC CIS manual defines Construction Industry Scheme work.
Note that if you provide construction industry services directly to a homeowner (not a contractor), the customer will pay you in full (gross) upon receipt of your invoice.
Construction Industry Scheme (CIS), registration requirements differ for contractors and subcontractors:
You must register as a contractor if:
If you’re doing construction work for a contractor, consider registering as a subcontractor. While registration isn’t mandatory for subcontractors, unregistered subcontractors face higher tax deductions from their payments (30% instead of 20%).
If your business activities include both hiring subcontractors and providing construction services to other contractors, you need to register as both a contractor and a subcontractor under CIS.
When you register for PAYE, you or your accountant can select an additional option to indicate whether you’ll hire any subcontractors in the Construction Industry.
If you have already registered for PAYE but now want to become a Contractor, you need to contact the CIS helpline at 0300 200 3210 and let them know that you wish to register as a Contractor within the CIS scheme. You’ll need to provide specific details, such as your PAYE reference and UTR number. After you give these details, HMRC will update their system to complete your registration process.
As a sub-contractor paying tax under the Construction Industry Scheme (CIS), if you have a lower income, you may be eligible for a refund due to the expenses of your trade and the availability of personal allowance.
You can claim tax relief for any expenses directly related to your work. It’s essential to remember that in the event of a compliance check on your tax return, HMRC may request evidence to confirm that the expense was incurred wholly and exclusively for your business. Therefore, you must keep accurate records of your expenses to ensure that you’re prepared in case of an HMRC enquiry.
Do you need or want to register for VAT as a limited company? This crucial step can increase your business’s
You can transfer a portion of your Personal Allowance to your partner (spouse or civil partner) if you meet the