CIPP UK: Construction industry scheme
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Country
United Kingdom
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learning hour's
3
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Material Year
2022
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Overview
The Construction Industry Scheme (CIS) is a specialised area of payroll, with a unique array of definitions, procedural responsibilities and calculations. This course covers all that is required for administering the CIS scheme correctly for an organisation.
During the half-day session, delegates will learn what work falls within the scope of CIS, the definitions of contractors, deemed contractors and subcontractors and how each should be registered with HMRC. The requirements for obtaining gross payment status, calculating payments due to subcontractors and completing the CIS300 return are also explained in detail.
Also covered are the penalties issued for not operating CIS correctly, the offsetting of CIS deductions and an overview of the principles of employment status and its applications within CIS processing. The course will focus on the calculation and reporting of CIS deductions. Detailed explanation of the reverse VAT charge will fall outside of the scope of this course.
Who is this course for?
Contractors, Payroll Co-ordinators, Payroll Managers & Finance Professionals who are responsible for processing and reporting CIS payments and returns.
What will you achieve?
To teach delegates the rules and regulations of the Construction Industry Scheme so they can manage the CIS processes required of their organisations.
To have an appreciation of:
1. Why correct employment status is important
2. The distinguishment between contractors and subcontractors under CIS
3. The complete the CIS registration process
4. How to calculate and process CIS deductions correctly
5. How to comply with contractor’s obligations to subcontractors and to HMRC.
What will be covered?
Overview of the CIS scheme:
- Defining contractors & subcontractors
- Distinguishing between mainstream and deemed contractors
- Classifying work that falls inside and outside of the scope of CIS
- Identifying the three deduction rates applicable for CIS payments
CIS Registration & Verification Process:
- Summarising the registration process for contractors
- Summarising the registration process for subcontractors
- Outlining the process for applying for gross payment status
- Explaining the verification process for subcontractors
Completing CIS Returns:
- Overview of CIS300 Returns
- Calculating amounts liable to CIS deductions
- Identifying payment methods & deadlines to HMRC for CIS deductions & returns
CIS Record-keeping requirements:
- Identifying CIS records required & appropriate timescales
- Summarising the penalty regime in place for CIS compliance
Overview of employment status:
- Appreciating the relevance of employment status for CIS operations
- Overview of the factors affecting employment status
- Identifying types of employment intermediaries
- Overview of the impact of off-payroll working rules for CIS
Summary
This course explains the responsibilities of contractors and sub-contractors operating under the Construction Industry Scheme (CIS), including recent procedural changes and the implications of getting employment status incorrect.
**This course is not included in the GPA Membership, Enhanced and Full-suite Memberships or the GPA Training Academy.
Course Trainers
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Fiona Smith
Before joining the CIPP as a full-time trainer in September 2019, Fiona worked in payroll in different organisations for over 9 years including her role as Assistant Group Payroll Manager for Breedon Group Services, the UK’s largest independent construction materials firm. Fiona holds the CIPP Foundation Degree in Payroll Management and the CIPD Diploma in HR Management and uses the knowledge gained in both of these within her training role to ensure that CIPP members have the information, skills and knowledge they need to keep up to date with the ever-changing payroll obligations.
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