HMRC Downloadable Forms: CIS
Guideline CIS349 (Are your workers employed or self employed - advice for contractors)
Certain guidance notes are available
as pdfs, including this one, which offers advice on determining the employment status of their workers, which is, ultimately, the
responsibilty of the main contractor.
Click on the form to the left, to download a copy
When working in the construction industry, (which can include anyone working on a construction project, even if they would not normally
come under the CIS Scheme) there are a number of issues which need to be considered, such as; do I fall within the CIS scheme?
am I a contractor or sub contractor? What is my employent status?
A recent example we have come across is that of a client who
has spent years designing, manufacturing and installing sineage on, mainly, business premises. The signs they worked on
were standard, laminate signs, with no lighting or other electrical components. On this basis, the client has never had any requirement
to register under the CIS scheme.
Recently, the client started to work with a customer who installed neon and backlit signs.
Any electric or illuminated sign falls under the remit of the CIS system, and anyone working on these will be required to register
under CIS, or risk suffering the deduction of 30% tax at source.
In this situation, our client was required to register as a
sub contractor, as they were involved in the production of these signs, even though their own work had nothing to do with the electrical
side of the installation. The very fact that the signs had some electrical components, even though they were installed by someone
else, meant that our client was, automatically, included within the scheme, and had no choice but to subscribe. For further guidance
on how the CIS system will affect you; Construction Industry Scheme Guidance