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Contractor responsibilties under the CIS Scheme

If you're a contractor under the Construction Industry Scheme (CIS) there are certain rules you'll need to follow. For example, you have to tell HMRC each month about all the payments you've made to your subcontractors within the scheme. You do this by making a monthly return.

Your monthly return must always reach HMRC no later than the 19th day of each month. The return must be sent each month and if nessecary a Nil return should be sent. You may face a £100 penalty if the return is not sent, regardless of whether it is Nil or not.

If you're a construction industry contractor HMRC expect you to keep certain records. You'll need to keep details of:

  • the gross amount of each payment you make to a subcontractor - excluding any VAT
  • the amount of any deduction you made from a payment before you gave it to the subcontractory
  • if you made a deduction, the amount of any materials costs - excluding any VAT

These records should be kept for at least three full tax years.


The content and advice is for information only. Last updated 26.07.2009.

For up to date information and advice, based on your specific circumstances, please contact us.

We cannot be held responsible for actions taken with reference to the content contained on this website.


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