Once you’ve registered with the HMRC you’ll need to check the subcontractor’s status to establish what percentage deduction, if any, you need to take from their wages. Then you’ll need to calculate a payment by deducting the correct percentage plus any expenses accrued such as material, fuel and equipment hire. You’ll have to pay the percentage deduction to the HMRC plus pay your subcontractor and issue them with a statement. Imagine how much time this could take if you have a large team of subcontractors.
And that’s not the end of it. With the Construction Industry Scheme, you must complete a return every month showing the payments you’ve made to each of your subcontractors.
Sound like time you’d rather spend managing your business? I’ll handle the whole CIS process for you and let you get on with what you do best.