Who has contract as a company need CIS registered

Person has got contract n invoice other company. He has been told to register your company for CIS

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Hi Everyone,

Person registered a company and working for someone and issue them company invoice and now he has been told to register your business for CIS and his company does not meet the £30,000 turnover rule to register a company for CIS.

Could anyone please help for this. Is that compulsory to register for CIS and has been deducted for 20% Verified Contractor if not 30% 

Replies (8)

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Caroline
By accountantccole
06th Aug 2019 11:30

Limited company needs to be registered as a subcontractor if they are in the construction industry. https://www.gov.uk/government/publications/construction-industry-scheme-...

Thanks (1)
RLI
By lionofludesch
06th Aug 2019 11:47

The £30,000 turnover rule is for Gross Payment.

Anybody can register if they're happy to take the 20% deduction.

Sounds like your client has filled in the wrong form.

Thanks (1)
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By Aftab_iq
06th Aug 2019 17:12

Is there anyway company can get gross amount and pay by director himself or company need not to register for CIS.

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Replying to Aftab_iq:
RLI
By lionofludesch
06th Aug 2019 17:24

Aftab_iq wrote:

Is there anyway company can get gross amount and pay by director himself or company need not to register for CIS.

What ?

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Replying to Aftab_iq:
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By 2003bluecat
07th Aug 2019 09:48

The company either does or doesn't need to register for CIS. You have not given us any information in order for us to comment on this.

Gross status can only be attained by meeting the criteria set out by HMRC, which can be found on the HMRC website.

I'm not sure what you mean by pay director himself. If you are suggesting the contract is changed to the director personally, it won't change the requirement to register for CIS; if the company is required to then the director will be required to and the client will be in the same position.

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Replying to Aftab_iq:
RLI
By lionofludesch
07th Aug 2019 10:08

Still not sure what the question is but if the company is contracting for the work, the company needs to register.

If the director is contracting for the work, the director needs to register.

Who is doing the work obviously has other implications.

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By Aftab_iq
09th Aug 2019 17:33

Hi,
I mean for director to pay taxes after finalise the accounts rather been deducted for 20% and after that tax back of some if deducted more than actual profits. Anyway, The company either does or doesn't need to register for CIS. What sort of information required???

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Replying to Aftab_iq:
RLI
By lionofludesch
09th Aug 2019 17:44

If the company is doing construction work, it needs to register. No ifs, no buts.

If the company doesn't register, it risks having 30% tax deducted at source.

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