Construction Industry Scheme Services

Schedule of Services

This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

1. Scope of CIS Services

We will provide the following services in relation to the Construction Industry Scheme (“CIS”) as applicable to your business. These services are limited to the matters listed below and do not extend to any other areas unless agreed in writing.

1.1 CIS Registration

• Assist with registering your business with HM Revenue & Customs (HMRC) as a contractor and/or subcontractor under CIS.
• Verify that your registration has been accepted and confirm your CIS status.
• Advise you on your ongoing obligations under the scheme.

1.2 Subcontractor Verification

• Verify each subcontractor with HMRC using the CIS verification system prior to making payment.
• Confirm the correct deduction rate (gross / 20% / 30%) to be applied.
• Keep records of verification references as required by HMRC.

1.3 Monthly CIS Return Preparation & Filing

• Prepare monthly CIS returns based on the information you provide, including details of all subcontractors and payments made.
• Submit CIS returns to HMRC by the statutory deadline (typically the 19th of each month following the payment month).
• Provide you with a copy of the submitted return for your records.

1.4 CIS Deduction Statements to Subcontractors

• Prepare and issue CIS deduction statements to each subcontractor for each period in which deductions have been made.
• Ensure the statements comply with HMRC requirements and contain all necessary information.

1.5 Calculation and Guidance on CIS Deductions

• Calculate the correct CIS withholding on subcontractor payments after allowable materials.
• Advise on treatment of materials, VAT, retention, and labour-only contracts.
• Explain the tax implications for both contractors and subcontractors.

1.6 Record Keeping Support

• Advise you on the statutory records required for CIS compliance.
• Maintain CIS verification and deduction records if we are instructed to do so.
• Provide templates and guidance to support your internal processes where relevant.

1.7 HMRC Correspondence and Enquiries

• Act as your agent for CIS matters with HMRC where authorised.
• Assist in responding to HMRC CIS enquiries, requests for information, or compliance checks.
• Advise you on any penalties or assessments raised by HMRC and your options for appeal.

1.8 Annual Tax and Accounting Implications

(Where we are also engaged for accounts and tax services)
• Incorporate CIS deductions suffered into your corporation tax or self-assessment computations.
• Ensure CIS suffered is correctly offset against PAYE liabilities where relevant.
• Reflect CIS-related balances in your year-end accounts.

2. Your responsibilities

To enable us to carry out the above services, you agree to:
• Provide complete and accurate records of all subcontractor payments made each month.
• Notify us promptly of any new subcontractors or changes to existing subcontractors.
• Provide material cost details so that we can calculate correct deductions.
• Ensure all information supplied to us is accurate, complete and provided on a timely basis.
• Maintain adequate internal controls over CIS-related payments.
• Ensure payments are not made to subcontractors without verification and approval.

We will rely on the information you provide and will not verify its accuracy unless specifically agreed.

3. Services Not Included Unless Separately Agreed

The following services are not included in this schedule unless specified otherwise:
• Payroll or PAYE services (other than CIS tax offset).
• Contract or employment status reviews (IR35/worker status assessments).
• Legal advice or contract drafting.
• Dispute resolution with subcontractors.
• VAT services relating to the domestic reverse charge or other VAT reviews.

If you require any of these additional services, a separate engagement and fee agreement will be provided.

4. Fees

Fees for CIS services will be charged as agreed in the Engagement Letter and may depend on:
• Number of subcontractors;
• Frequency of CIS returns;
• Time spent on HMRC enquiries;
• Any additional services requested.