Construction Industry Scheme - Exemption?

Can very small contractors be exempt from the scheme

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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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Portia profile image
By Portia Nina Levin
12th Jan 2017 14:55

The (sic) HMRC are correct.

Thanks (1)
RLI
By lionofludesch
12th Jan 2017 15:16

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.

Thanks (1)
paddle steamer
By DJKL
12th Jan 2017 15:24

My initial thought reading your post was you had recruited "the Borrowers" as clients- it would obviously make rewiring etc so much simpler.

Thanks (2)
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By DMGbus
12th Jan 2017 18:20

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".

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Replying to DMGbus:
RLI
By lionofludesch
12th Jan 2017 18:34

I never thought it would apply anyway.

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