Tax & The Construction Industry Scheme - Getting it Right

Introduction

The Construction Industry Scheme (CIS) can be in point in many circumstances and getting it wrong can lead to substantial liabilities (and in some cases unexpected liabilities).

It is essential for businesses operating within the construction sector, as well as the professional advisors who assist their clients, to be fully versed with the CIS and when and how it might apply to their or their client’s business.

This course covers the two fundamental parts of the CIS being, when and how CIS applies in accordance with primary legislation and the administration of the CIS as set out under secondary legislation.

The course is designed to give the delegates the necessary information to enable them to apply the rules as accurately as possible.

In addition, delegates will receive practical advice on how to manage the typical issues that can arise under the CIS from questions regarding the application of the rules to making payments etc.

Compliance with the CIS has become even more important given the introduction of the VAT Domestic Reverse Charge.

What You Will Learn

This course will cover the following:

• Brief introduction to the CIS
• When does it apply?
• The terms ‘construction operations’ and ‘structures’
• Territorial limits
• How does it affect me?
• Who should take responsibility?
• Consequences of getting it wrong
• The scope of the CIS, covering:
• Construction contracts
• Contractors and subcontractors and registration requirements
• Exceptions
• Construction operations and VAT Domestic Reverse Charge
• Picture quiz - what are construction operations
• Materials charges
• What does legislation say?
• What does this mean?
• Materials charges incurred by others - example
• Plant & machinery
• HMRC interest
• What should you consider?
• Employment status & off-payroll working
• Employment status
• Off-payroll working (IR35)
• Check employment status for tax (CEST)
• Consequences of getting it wrong
• The mechanics, covering:
• Payment classifications
• Payments under CIS
• Statutory returns
• Penalty regime
• Case studies
• Consultation
• When can things go wrong?
• Key actions