Corporation Tax

Yes, we offer this service as part of our general payroll services.

Companies incorporated in the UK are automatically treated as resident in the UK for tax purposes. Exceptions can apply where a company is treated as resident outside the UK by way of a double tax treaty. Often tax treaties will refer to where the “effective management” is. This concept is based around where board meetings and decisions at the highest level are carried out. If this is outside the UK, the company may be treated as non resident. It is a very technical area of tax and usually requires careful consideration of the facts.

The scheme affects companies and subcontractors working in the construction sector. It covers structural or civil engineering work on roads and bridges and work carried out on a permanent or temporary building. Not all construction activities are included and architecture, carpet fitting and scaffolding, for example, are excluded from the scheme.

The construction industry scheme is similar to PAYE for employees in that it withholds tax from payments made by contractors to subcontractors.

Under the CIS Scheme, contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC). These deductions count as advance payments towards the subcontractor’s tax liability. Contractors must register for the scheme. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they are not registered. Large companies working as subcontractors can apply for “gross payments status”, which exempts their payments from such deductions.

The Industrial Training Act specifies that all employers in the construction industry must register with the CITB and complete an annual levy return. Many international construction companies are not aware of this requirement and fail to complete returns on time.

The levy funds that are collected from employers are reinvested into the industry by providing funding for training and thereby ensuring that standards and safety are continually improved. Employers registered with the CITB can access grants and funding and other support services each year.

We help new companies with their CITB registration and take care of completing the annual returns, ensuring that they can access their full funding entitlements each year.