The construction industry in the UK which is worth over £362 billion. In 2019, it was said to have contributed to 6% of all United Kingdom economic output. Therefore it’s clear that the construction industry is a mega sector which UK trade and the economy heavily relies on. Due to the amount of alleged tax evasion and fraudulent behaviour in the industry, the Construction Industry Scheme (CIS) was introduced. The CIS is a HMRC scheme where contractors deduct money from a subcontractor’s payments and pass it to HMRC. Because of the amount of detail and time it takes to process CIS correctly, there are many benefits to outsourcing CIS responsibilities to firms like us. By us taking care of CIS for your construction business, it will benefit you in a number of ways:

Expertise

CIS rules are complex and hard to get your head around. We won’t just help you to navigate the confusing rules and regulations of CIS, we will also educate you on matters with full transparency, so you know exactly what’s going on.

Time-saving

By handing over CIS responsibilities, it can save huge amounts of priceless time for construction businesses. This will enable key figures in the company to focus on more important operations and projects which make up the lifeblood of the business.

Cost-effective

Hiring and training someone to solely look after CIS and the accountancy issues will incur a large salary. By outsourcing CIS responsibilities, it will definitely be more cost-effective.

Reduced Risk of Errors

Reducing the risk of errors in compliance and record-keeping is critical in CIS. By having someone in-house take care of it for you, the risk of errors is increased. When going through a professional firm like Abbey Accountants, we have the expertise and systems in place to ensure consistent and meticulous accuracy and compliance. This will leave you safe in the knowledge that everything is taken care of.

Avoid Penalties

Non-compliance is one of the largest contributors to penalty fines when it comes to CIS. With the latest rules and regulations changing constantly, it’s difficult to keep on top of it all. Outsourcing CIS can help avoid penalties and fines for non-compliance, as professional firms like Abbey Accountants are always up-to-date with the latest rules and regulations.

Better Cash Flow

Cashflow is the beating heart of any business. By handing over responsibilities for CIS, businesses can manage their cash flow more effectively. This is because we can assist with tax and payments to HMRC in a timely and structured manner, providing you with accurate financial reporting which allows you to budget appropriately.

We hope this has outlined the benefits of handing over CIS responsibilities to a professional services firm like ourselves. If you’d like to know any further information on anything mentioned, or anything accounting related for that matter, please do not hesitate to get in contact with us at Abbey Accountants.