Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractor’s tax and National Insurance. Contractors must register for the scheme. Subcontractors do not have to register, but deductions are taken from their payments at a higher rate if they’re not registered. By having a CIS registered limited company, you also have the opportunity to apply for gross payment status. Once the limited company is on gross payment status, you can enjoy being paid your total income (excluding VAT) by your client while only paying taxes and National Insurance contributions on a quarterly basis. At Theron Accounting, we assist and file CIS monthly returns for numerous of our contractor clients. This allow them to do what they do best as contractors, safe in the knowledge that the paperwork is being dealt with by experts in this area of Tax Compliance.