How to Get CIS Gross Payment Status

Getting  Construction Industry Scheme (CIS) Gross Payment Status is something that you may wish to consider.

This allows you to receive your turnover in full rather than having a with-held percentage deducted which you then reclaim later.

You can apply for CIS gross payment status either:

• at the time that you register for the Construction Industry Scheme (CIS).
• a later time, after you register for CIS.

This means you’ll be paid in full by contractors. You’ll have no deductions taken and will need to pay all your tax and NI at the end of the tax year.

How to qualify for gross payment status

You must show HMRC that:

• you have a good tax payment record for paying  tax and National Insurance.
• your business does, or provides labour for, construction work in the UK.
• your business is run through a bank account.

Thresholds

HMRC will consider your turnover for the last year. Ignoring the cost of materials, your turnover must be at least:

• sole trader: £30k
• for each partner in a partnership: £30k, or at least £100k for the whole partnership
• £30k for each director of a company, or at least £100k for the whole company

If your company is controlled by 5 people or fewer, you must have an annual turnover of £30k for each of them.

 

How to get your numbers to HMRC

Declare your payments as income at the end of the tax year in:

• your Self Assessment tax return if you’re a sole trader or partner
• your Corporation Tax return if you own a limited company

If you are a sole trader we can help you here, and if you have a company we can help you here.