A construction service from the United Kingdom needs to enlist them in the CIS scheme. CIS stands for Construction Industry Scheme, which is managed by the HM Resources and Customs Department. Under this scheme if you are a contractor, then you have to deduct payments of the subcontractors and submit them within the department. This scheme is also named as construction payroll, this payroll is majorly paid by the construction services, but other company can enroll in this scheme.
Aim of the scheme is to collect the deserved amount of the tax from the subcontractors. As of now, the contractor would be submitting the tax and advance payments of the National Insurance for the subcontractors. Most of the contracting services give this service to an agency to save themselves from the headache of paperwork and administration.
If your company has been in the construction over for three years and you are spending over 1 million Euros annually, then you need to be enrolled in the scheme. This means that from whatever your business is operating, if your organization is doing construction for three years and spending the above-mentioned amount, then you should enroll yourselves in the service.
We know what construction payroll is and which companies and organizations need to enroll in this scheme. You are also aware that most of the companies give this work to an agency that is ready to handle all the CIS Payroll work. There is a number of choices when you are hiring an agency; you should be sure that your are choosing the agency right one for you. Let’s discuss what the factors you should keep in mind when you are choosing an agency are: –
- Time and Money: – The agency you choose should have only one aim, and that is to save your time and money. If you have enough time and money then you should have done the construction payroll all by yourselves. You can know this by asking how their services from past clients were or visit reviewing websites, but you should be sure that you will not wind-up in wasting precious and valuable time.
- Be rid of the Burden: – You are hiring the services to get rid of the burden of managing the employment and the paperwork of construction payroll, be sure that the firm you are choosing has enough expertise to do that. Most of the agencies have the required skill, but still you need to be careful. You can use different software to that, but then again you will be burdened with paperwork.
- Protect Your Rights: – There is a number of technicalities you need to take care of when you are working with the scheme of CSI Payroll. The agency you are choosing protects you from the CIS status review and the right employment claims. When you are doing this work all by yourself, then you need to have a different person for status review and employments claims.
- Price: – You should not choose an agency which costs you higher than you can afford. Most agencies have the same price or have some negligible difference. The price of the services depends on the experience of the agency.
If you are involved in any kind of construction activity for more than three years, then you need to enlist your company in the CIS scheme. The construction payroll means when the contractor deducts the payment of the subcontractors and gives it to the government. This is done to ensure that the government is having an apt amount of tax and advance payments.