Managing CIS Deadlines and Payments
As a landlord or tenant you may think that The Construction Industry Scheme (CIS) may not apply to you, however the definition of ‘contractor’ can be extended to landlords who make payments to tenants where tenants have contracted to carry our construction works. Under the scheme you are required to withhold tax from payments in relation to certain work.
If a landlord averages a spend of over £1m a year over a consecutive 3-year period they will be deemed a contactor if they are spending money on costs such as; demolition, repairs and painting/decorating. A tenant can also be a subcontractor if they are deemed to carry our work for the contractor.
As a landlord if you are deemed to be a contractor under the CIS scheme there are a couple of steps you must follow:
As a tenant the restrictions are far less as the burden usually lays with the contactor rather than the subcontractor. However, they are still required to maintain records and notify HMRC of any changes.
As with all regulations there are penalties for filing a late return these depend on how late the return is. A fixed penalty can range from £100-£300 or in more severe circumstanced up to 5% of any deductions shown on the return if the return is over 6 months late.
Naturally, as a contractor, your time is pushed and you require as much time as possible to focus on your day job. Newton Magnus are friendly, approachable and fully qualified accountants in Dorset who can manage your taxes and accounts for you. With a range of packages to suit every size of business, Newton Magnus are accountants who understand your needs.
Please Call: 01202 697611