Hi,
I have a very small construction client, who is about to take on a subcontractor.
I read in the guidance for the CIS scheme that contracts below £1000 can be exempt. Does anyone know how to obtain exemption? The HMRC told me on the phone to register anyway.
Thank you very much!
Replies (5)
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If he's never, ever going to pay subcontractors £1000 - in total, to all subcontractors - you might have a case.
But I suspect the contractor will end up making a stream of payments totaling over £1000.
I'd register. It's not difficult to deal with.
My initial thought reading your post was you had recruited "the Borrowers" as clients- it would obviously make rewiring etc so much simpler.
The £1,000 limit applies to "Deemed contractors" - see CIS340 for definition.
This £1,000 limit does not apply to mainstream contractors.
In my opinion a "construction client" will fall within the definition of being a "mainstream contractor".