Construction Industry Scheme

24 October 2017

Do you report Construction Industry Scheme (CIS) deductions on an Employment Payment Summary (EPS)?

Are you aware that only limited company subcontractors who do not have gross payment status should declare an entry for CIS deductions on their EPS?

HMRC’s latest Employer Bulletin highlighted that they have recently updated their payroll reporting guidance including software developers’ guidance, to make this clearer.

Five key points to remember:

  • If you are a limited company subcontractor, report the total value of CIS deducted from your company’s income as a subcontractor, during the year to date
  • If you are also a contractor, don’t include deductions from payments you’ve made to subcontractors each month. These should be reported on your CIS return, through HMRC’s CIS online service or commercial CIS software. See what you must do as a contractor: file your monthly returns
  • File your EPS by the 19th of the following month, off-setting your company’s deductions against any other PAYE liabilities where possible
  • If your business is not a limited company, or has gross payment status and therefore has not had deductions taken from payments within CIS, you should not report any CIS deductions on the EPS
  • Non-limited companies should report their CIS deductions on their Self Assessment or Partnership returns

CIS for subcontractors webinar – Friday 27 October at 09:00

For further support and advice about working as a subcontractor, including reporting and gross payment status, you can register online to join a live broadcast of the ‘CIS for subcontractors’ webinar on Friday 27 October. You can learn more about the basics of CIS for subcontractors, and receive answers to your questions about CIS during the live broadcast.

You can also sign up for future webinars and emails about CIS, and watch recorded versions of both the CIS for subcontractors and CIS for contractors webinars online at webinars and emails on the Construction Industry Scheme.