If you are a Contractor and use Subcontractors for your work, you are required by HMRC to deduct money from your subcontractors payments and pass it on to HMRC -
The deductions count as advance payments towards a subcontractors tax and national insurance contributions.
More information on CIS and what it entails can be found by visiting the HMRC website https://www.gov.uk/what-is-the-construction-industry-scheme
When you pay your subcontractors it will be a similar process to paying an employee, in that HMRC needs to know each month how much has been paid and to whom.
That's where we can help take the strain out of the admin and ensure you comply with HMRC requirements.
There are two ways we can manage the process for you, depending on how your subcontractors work.
Option one is where subcontractors turn up to work at a site and record their hours in a site log. Although it is best if they give you an invoice for their work, this does not work for all. We can take the information from the site log and produce a subcontractor payslip which confirms the number of hours and amount paid/deducted. The payslip can be emailed to the subcontractor for them to keep for their tax records or they can access a digital copy via the BrightPay Connect app.
Option 2 is where you may have one or a few invoices from a subcontractor during the month. Each month we will review the invoices paid to produce a Subcontractor payment certificate, confirming all payments and deductions made within that month. The certificate can be emailed to the subcontractor for them to keep for their tax records or again they can access a digital copy via the BrightPay cloud connect app.
In both instances, we will carry out the reports and filings that are required by HMRC and provide you with the total amount you as the Contractor need to pay to HMRC each month.
For more information or to discuss your requirements, please fill our contact form
