Building contractors and subcontractors in mainstream construction work, or organisations who have a high annual spend on construction (typically more than £1 million pounds per year) may fall under the Construction Industry Scheme. The scheme is a set of rules which apply to the handling of payments made by contractors to subcontractors for construction work.
Firstly you need to establish whether your business falls under the auspices of the scheme. The Construction Industry Scheme (CIS) can apply to all types of businesses that work in the construction industry in the UK. These include: self-employed individuals working as sole traders, partnerships, companies and limited liability partnerships.
Some examples of the types of construction work that are covered by the Construction Industry Scheme (CIS) include jobs like:
- site preparation;
- general construction (bricklaying, roofing, plastering etc);
- alterations and extensions;
- repairs and refurbishment;
- dismantling work;
The Construction Industry Scheme is a complex piece of legislation, so please contact Harvey, Telford & Bates to make sure your business is fully compliant.