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Cheap accountancy for contractors in Liverpool

Liverpool has a hugely proud reputation for the construction of imposing Victorian buildings and a ship-building legacy. The construction industry is still very dear to Liverpool’s heart and still a big part of the city’s economy, so many contractors in Liverpool will need to be familiar with the financial regulations governing the industry

The Construction Industry Scheme (CIS) lays down how the rules governing the handling of payments made to subcontractors must be dealt with by construction industry contractors, as well as those in some other businesses. The main requirement of the CIS is that a sub contractor’s tax status must be taken account of as determined by HMRC when payments are made by the contractor. It is a complicated regime, and could mean that a contractor needs to make deductions from the portion of the payment not comprising of the cost of materials they paid for themselves. Such deductions are transferred to HMRC by the contractor. To avoid complications, cheap accountancy for contractors in the Liverpool area is available, and can help navigate contractors through this minefield of rules and regulations.

Subcontractors who are HMRC-registered for payment under deduction are deducted 20% from payments, rising to 30% for subcontractors who are not registered. Some subcontractors who meet criteria set down by HMRC can receive payments without any deduction of tax. As with most taxation regulations, there are severe repercussions for those contractors who do not comply with CIS, such as financial penalties and, in the most serious instances, prosecution.

As can be seen, the burdens of complying with CIS are significant, reinforced with penalties for non-compliance. The burden of complying can be passed to professionals who offer cheap accountancy. For contractors in Liverpool, Wainwrights Ltd is an established firm able to ease the weight of responsibility by offering a comprehensive outsourced CIS service at a competitive price.