I've just started working for a Company that uses subcontractors. This company has never deducted CIS as the engineers used were primarily air conditioning engineers. Yet now we are also going to be using Electrical Subcontractors.
We don't really want to go down the CIS route and I've noticed on the HMRC website that if its less than £1 million spent on construction works then there would be no need to deduct CIS from the subcontractors. Am I understanding this correctly that as our company's turnover is around £650k per year and that is for both air conditioning works and electrical works we would not have to make any deductions?
I've also being told by someone already in the industry that if our subcontractors become a limited company and I work for them as a book-keeper and do all the accounting works for them that this would be another way of not having to deduct anything.
Can anyone assist me as I want to make sure that what my MD wants to do is correct and that there will be no comeback from the HMRC as I know how strict they are when it comes to CIS.
Any advice will be grately appreciated.