CIS Limited Company & Sole Traders
CIS Contractors must give subcontractors monthly payment statements showing how much they have paid them and how much has been stopped and paid to HMRC.
CIS Contractors must give CIS subcontractors monthly payment statements showing how much they have paid them and how much has been stopped and paid to HMRC.
Contractor monthly returns CIS300 must be made monthly even if you have not paid any subcontractors that month – a nil return must be submitted.
Contractors need to confirm that each subcontractor is not actually an employee, this is part of the declaration on the monthly CIS300 return.
You should review the employment/self-employment status of all your staff and subcontractors every 3 months as you do not want to be liable for additional tax and NIC if your subcontractors are in fact employees.
CIS300 return is due with HMRC by 19th of the month following the month it covers. For example for the month 6 June to 5 July (the CIS month always runs from the 6th of one month to the 5th of the next) your return must be with HMRC by 19th July. The automatic penalty for a late monthly return is £100.
Limited company contractors must make monthly EPS submissions to HMRC showing the amount of CIS withheld on their sales and stopped on any payments they have made to subcontractors. This will enable them to offset any PAYE/NIC due to be paid to HMRC on employee salaries with any CIS “overpaid” to HMRC.
CIS payments to HMRC are made monthly if the CIS and PAYE/NIC due is on average more than £1,500. If it is on average less than £1,500 then it is paid quarterly – exactly the same deadlines as the PAYE/NIC quarterly deadlines.
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