How do I apply for Gross Payment Status under CIS?
You must meet HMRC’s turnover threshold (e.g., £30,000 per director/sole trader) and maintain a clean tax compliance history over the previous 12 months.
What is the difference between gross payment status and net deductions under CIS?
Sub-contractors registered for gross payment status receive full payment without deductions and settle tax through year-end returns. Those without gross status have 20% (or 30% if unregistered) deducted at source by the contractor.
How does the VAT Domestic Reverse Charge affect my construction business?
Under the reverse charge rules, VAT-registered sub-contractors supplying CIS-regulated building services to VAT-registered contractors no longer account for output VAT—the main contractor accounts for it directly on their VAT return.
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