Question:

What is Construction Industry Scheme (CIS)?

Answer


Contractors completing work for our Home Group Development and Live Smart operating units will be subject to CIS verification checks and will subsequently be included in our monthly CIS returns that we are required to issue to HMRC.

Contractors are classified by HMRC under two brackets; Net and Gross sub-contractors. Home Group is only required to make deductions from Net sub-contractors, but are required to produce monthly returns for both Net and Gross sub-contractors. These deductions are classed as advanced payments made towards Net sub-contactors’ tax and national insurance contributions.

CIS covers most construction work to buildings, including site preparation, decorating and refurbishment.

For the purpose of CIS, construction work includes:

  • Preparing a site, e.g. laying foundations and providing access works
  • Demolition and dismantling
  • Building work
  • Alterations, repairs and decorating
  • Installing systems for heating, lighting, power, water and ventilation
  • Cleaning the inside of buildings after construction work

Exceptions

Some contractors will not have to register if they only deliver certain jobs.  These include:

  • Architecture and surveying
  • Scaffolding hire (with no labour)
  • Carpet fitting
  • Making materials used in construction including plant and machinery
  • Delivering materials
  • Work on construction sites that’s clearly not construction, e.g. running a canteen or site facilities.