The new Construction Industry Scheme (CIS) rules are in force NOW. For businesses in the building industry, CIS requires major changes to the way they manage their projects; CIS compliance will be central to their profitability.
However, CIS also presents significant risks for many large organisations outside the building sector who are ‘deemed contractors’ - risks of which many are still quite unaware.
The problem
The penalty for not complying with CIS is up to £3,000 per breach. This can really add up. Under CIS, if you have not followed the correct procedures you risk penalties if you pay a subcontractor as an independent contractor, even if you deduct and pay over the correct tax.
