Construction payroll & construction industry scheme (CIS)

Providing payroll services for construction businesses bring with them a number of complications.

On top of the normal payroll issues, payrolls of construction industry businesses often have the following specific issues.

• Temporary contract workers
• Weekly, fast turnaround payroll
• Minimum wage monitoring
• Very mobile workforce which makes keeping accurate payroll records a challenge
• Low paid employees
• Non UK workers

As well as dealing with employees, it is common for construction businesses to have to deal with fellow contractors and sub-contractors.

Our CIS service includes:

• Registering contractors with HMRC for the CIS scheme
• Verifying your subcontractors with HMRC
• Produce monthly statements of payments & deductions which are required to be given to the subcontractors
• Submit your monthly returns of subcontractor payments and deductions to HMRC

It is important that your business is compliant with the Construction Industry Scheme rules. As there are penalties should you fail to complete and submit your monthly return (including nil returns) to HMRC by the 19th day of each month.

Contractors who miss this deadline for whatever reason will be charged an automatic penalty of at least £100 for every month the return is late. For instance, if you’re 6 months late, you’ll get a minimum penalty of £600.

Businesses could also lose their Gross Payment Status if held unless they are vigilant and keep up to date with their payroll and CIS obligations and payments.