As a CIS contractor, you have several key responsibilities to ensure compliance with HMRC regulations:
Register with HMRC: You must register as a contractor under the CIS scheme.
Verify Subcontractors: Check whether your subcontractors are registered with HMRC.
Deduct Tax: Deduct the appropriate amount of tax (20% or 30%) from payments to subcontractors.
File Monthly Returns: Submit monthly CIS returns to HMRC, detailing all payments made to subcontractors and the deductions taken.
Provide Statements: Issue payment and deduction statements to subcontractors each month.
Pay Deductions to HMRC: Pay the deducted amounts to HMRC each month.
Failing to meet these responsibilities can result in penalties and interest charges from HMRC.