Construction Industry Scheme: Tax Specialist Videos Highlight Tax Requirements
A Dains tax specialist has been building firm foundations with the construction sector after delivering an online insight into the Construction Industry Scheme (CIS) and how to comply with HMRC.
Dated: 24 July 2020 Author: James Hunt, Employment Services Senior Manager
Employment Services Senior Manager James Hunt teamed up with Renovate Me to answer questions in a series of short videos about the scheme.
Renovate Me is a website which provides expert knowledge and contacts for anyone looking to renovate a property and enables them to access prices quickly and easily from skilled industry workers.
Under the Construction Industry Scheme, contractors make deductions from their payments to subcontractors and remit them to HM Revenue and Customs (HMRC).
The deductions count as advance payments towards the subcontractor’s tax liabilities.
Contractors must register for the scheme and although subcontractors don’t have to register, deductions are taken from their payments at a higher rate if they’re not registered.
James said: “I was pleased to be able to share my knowledge of the Construction Industry Scheme and talk about tax requirements within the construction industry.
“Construction is a sector whereby it can be difficult for HMRC to track individuals who are working across multiple sites and don’t necessarily file a tax return at the end of the year.
“The scheme is designed to take the onus away from individual workers and move it towards the contractors who are engaging them to do the work.”
In the videos, James also provided answers to other questions about the scheme which are relevant to construction workers.
He talked about how deductions from payments to sub-contractors are calculated, the fines and penalties which contractors can incur and also whether different services such as carpet fitting, scaffolding and landscaping fall under the CIS scheme.
James added: “The videos are a useful resource for anyone who wants to know more about tax in the construction world and they highlight the importance of tax compliance and ensuring payments are up-to-date to avoid any unwanted financial penalties.”
To see the series of Renovate Me videos click here
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