Skip to content

We Want To Hear From you

Have a comment or question? Send us a message.

Get In Touch With Us Today

If you have got questions, we have the answers. Just send us a message and one of our accountants will be in contact with you within 48hrs – even on weekends and holidays.

    Your Message

    Stop By Anytime

    We are open: Monday to Friday from 9am to 7pm and Saturday from 10am to 5pm

    18 - 20 East Street
    Bromley, BR1 1QU

    At Adiva Accountants all initial consultations are free of charge, so contact us today.
    For quality, competitive, and friendly accountancy services, please contact

    Adiva Accountants

    on 020 8313 9117 or via email at contact@adivaaccountants.co.uk.

    At Adiva Accountants we have the knowledge and the experience to provide you with the kind of accounting and tax services that you are looking for. At Adiva Accountants we look forward to discuss with you, without obligation, ways in which we may be able to help your personal or business needs.

    Alternatively, you can complete the contact form here and we will respond as soon as possible.

    Directors of Adiva Accountants have over 10 years’ experience of providing accountancy services. They have completed Bachelor and Masters degrees in Accountancy, Taxation and Business Management. Additionally, they have completed various accountancy qualifications such as ACCA, AAT, etc. So, they hold various accountancy degrees and qualifications up to chartered certified accountant.

    They can advise you on many other things, such as how to get the best price when you come to sell your business. Or on how to satisfy the banks conditions when you need help with finance. Or on how to keep creditors, insurers and suppliers happy, etc. Their expertise covers income tax, capital gains tax, corporation tax, VAT, payroll and many more.

    They can help with dealing with Inland Revenue investigations also.


    Parking

    There are parking bays right in front of the office, please be careful not to park in loading bays. Parking costs £1.90 per hour (maximum stay 2 hours). Alternatively, you can park in Sainsbury’s car park, which is just 1 minute walk away from the office. Parking there is completely free for 30 minutes and would be free for up to 2 hours provided you spend £10 in Sainsbury’s. Our office is at 18-20 East Street, Bromley BR1 1QU, which is opposite of O’Neill’s pub and TruGym.

    Alternatively, there is a big car park (1,500 spaces) in the INTU Bromley Shopping Centre (formerly The Glades). Parking costs £1.10 per hour for every day of the week. The shopping centre car park address is: The Glades, High Street, Bromley, BR1 3EF.


    By car

    If you drive to our office in Bromley, please enter this address in your Satnav 18-20 East Street, Bromley, BR1 1QU. From Orpington, you can take A232, then A21. From Beckenham, you can take A222. From Eltham, you can take A208B226A2212, then A21. From Lewisham and Catford, you can take A21. From Croydon, you can take A232A233, then A21. From Kent, you can take A21. From North and East London, you can take the Blackwell tunnel southbound, A2A2213A20South Circular RoadA2212, then A21. From West London, you can take South Circular Road to Catford, then A21.


    Public transport

    We are situated in Bromley East Street, which is served by Bromley South and Bromley North train stations, they are about 5-10 minute’s walk away. There are direct trains from London Victoria, London Bridge and London Blackfriars to Bromley South station. Bromley South is connected by direct trains to major towns around London and in Kent such as St Albans, Orpington, Sevenoaks, Ashford, Gillingham, and Ramsgate.

    The main bus routes serving Bromley High street are 61, 119, 138, 146, 208, 227, 246, 261, 269, 320, 336, 352, 354, 358, and 367.

    Chartered Certified Accountants       Call us: 020 8313 9117 contact@adivaaccountants.co.uk
    We're currently open.

    At Adiva Accountants we will do everything we can to support you and help you to grow your business. As our team, expertise and services we offer grew, we created these factsheets to pass our knowledge and help our clients even more. We believe these factsheets, will give you invaluable insights into everyday business issues. Simply click on the links below to access the relevant topics.
    If you have a question which is not listed below, then please contact us on 020 8313 9117, or email at contact@adivaaccountants.co.uk and we will be happy to help.
    Below you will find answers to questions that we are frequently asked.

    Where can I find your offices?

    We are located in  Bromley High Street. Our office is above Natwest bank in the middle of Bromley High Street, opposite of Next store. The entrance to the office is between Natwest bank and Thomas Cook, please ring the bell for number 4.

    Are you hiring?

    We are not hiring for the moment, but please keep checking as we are continually growing and will be expanding our team in the near future.

    What are your hours of operation?

    We are open:

    Monday to Friday from 9am to 7pm and Saturday from 10am to 5pm.

    What are your most popular services?

    The most popular services are company accounts, personal tax returns, CIS, payroll and VAT returns.

    Which is your nearest train station?

    Our office is in the middle of Bromley South and Bromley North train stations, they are about 5 minute’s walk away. There are direct trains from London Victoria, London Bridge and London Blackfriars to Bromley South station. Bromley South is connected by direct trains to major towns around London and in Kent such as St Albans, Orpington, Sevenoaks, Ashford, Gillingham and Ramsgate.

    Which are the nearest bus routes?

    Our office is in the middle of Bromley High Street and is served by 15 different bus routes. The bus routes serving Bromley High street are 61, 119, 138, 146, 208, 227, 246, 261, 269, 320,336, 352, 354, 358 and 367.

    PERSONAL TAXATION

    This group of factsheets covers concise information on a variety of topics relevant to an individual. It covers taxes on the disposal of capital assets and the inheritance taxes. It covers self employed, partnerships and CIS (Construction Industry scheme). Property investment and tax is covered too.

    c Expand All C Collapse All

    Please do get in touch if you would like further information about the Construction Industry Scheme (CIS). Whether you are a contractor or a subcontractor, at Adiva Accountants in London we can advise on the CIS for your business in Bromley, Kent and London.

    The whole CIS system is backed up by a series of significant penalties. These penalties cover situations in which an incorrect monthly return is sent in negligently or fraudulently. Or for failure to provide CIS records for HMRC to inspect and incorrect declarations about employment status. Penalties are triggered by late returns under the CIS scheme as follows:

    • a basic penalty of £100 for failure to meet due date of the 19th of the following month
    • where the failure continues after two months after the due date, a penalty of £200
    • after six months, the penalty rises to the greater of 5% of the tax, or £300
    • after 12 months, the penalty will again be the greater of £300, or 5% of the tax
    • where information is withheld deliberately, the penalty is 70% of tax, or £1,500 if greater
    • where the withholding of information is deliberate and concealed, it will be 100% of the tax, or £3,000 if greater
    • where the return is 12 months late, but the information only relates to persons registered for gross payment (so no tax deduction was due). The penalty will be £1,500 for deliberate withholding without concealment, and the penalty will be £3,000 for deliberate and concealed withholding of information
    • where a person has just entered the CIS scheme penalties will be restricted to a maximum of £3,000 in certain circumstances

    If you need help with penalties, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to help you.

    There are three requirements for subcontractors to be paid gross. They include a business test, a turnover test and a compliance test. To qualify for gross payment a subcontractor must:

    • have paid their tax and National Insurance on time in the past
    • do construction work (or provides labour for it) in the UK
    • run the business through a bank account.

    The turnover for the last 12 month (ignoring VAT and the cost of materials) must be at least:

    • £30,000 for a sole trader
    • £30,000 for each partner in a partnership, or at least £100,000 for the whole partnership
    • £30,000 for each director of a company, or at least £100,000 for the whole company

    If your company is controlled by 5 people or fewer, you must have an annual turnover of £30,000 for each of them.

    Subcontractors not registered with the HMRC will suffer the higher rate deduction (30%) from any payments made to them by contractors.

    The contractor has to contact HMRC to find if he should pay a subcontractor gross or net. You don’t have to verify all the subcontractors all the time. You would normally verify only the new ones. The verification procedure will establish which of the following payment options apply:

    • gross payment (no deductions made)
    • a standard rate deduction of 20%
    • a deduction made at the higher rate of 30%, if the subcontractor has not registered for CIS with HMRC. Or cannot provide accurate details to the contractor and HMRC cannot verify them.

    HMRC will give the contractor a verification number for the subcontractors which will be matched with HMRC’s own computer. This number will be the same for each subcontractor verified at any particular time. Subcontractors who cannot be verified will have special suffixes for the numbers. The numbers are also shown on the payslips issued to the subcontractors and on contractors’ monthly returns.

    These numbers are important and contractors have to ensure that they have a good system in place for obtaining and retaining them. It is crucially important to give precise details to HMRC. As the higher rate deduction (30%) will have to be made, if their computer does not recognise the subcontractor. Mandatory online verification of subcontractors will be introduced from 6 April 2017.

    The contractor will not have to verify the subcontractor if they have already included them on any monthly return in the two previous tax years.

    Payslips

    All subcontractors have to be provided with at least a monthly ‘payslip’. It should show the total amount of the payments and how much tax, if any, has the contractor deducted from those payments. Payslips can have different styles, but certain specific information has to be provided including the:

    • contractor’s name and their employer tax reference
    • subcontractor’s name, unique tax reference or specific subcontractor reference
    • tax month to which the payment relates
    • the gross amount of the payment
    • cost of any materials which have reduced the gross payment
    • amount of any tax deductions made and
    • verification number where deduction has been made at the higher rate of 30%.

    If contractors include such payments as part of their normal payroll system, it has to be clear that they are classed as self-employed.

    If you need help with the payroll of the subcontractors, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to assist you.

    Not always. The items below should be excluded when entering the gross amount of payment on the monthly return:

    • VAT charged by the subcontractor (if the subcontractor is registered for VAT)
    • any Construction Industry Training Board levy.

    Furthermore, when working out the amount of payment from which the deduction should be made, the following items should be deducted from the gross amount of payment:

    • what the subcontractor paid for materials including VAT paid (if the subcontractor is not registered for VAT). Plus consumable stores, fuel (except fuel for travelling) and plant hire used in the construction operations
    • the cost of manufacture or prefabrication of materials used in the construction operations.

    The gross amount of payment and the amount from which the deduction is made should include any travelling expenses (including fuel costs) and subsistence paid to the subcontractor.

    The deadline for paying over the deductions

    The deadline for the contractors to pay over all deductions made from subcontractors is by the 19th following the end of the tax month to which the deductions relate. The deadline would be 22nd, if payment is being made electronically, or the next earlier banking day when the 22nd is a weekend or holiday. Often the contractor is a company which operates as a subcontractor and has deductions made from its payments as a subcontractor. In these circumstances, the deductions made may be set against the company’s liabilities for PAYE, NI and any CIS deductions it is due to pay over.

    Subcontractors

    A subcontractor will need to register for the CIS when first starts working in the construction industry on a self-employed basis. The registration is carried out by the subcontractor who needs to contact HMRC by phone or online.

    If you need help with the registration of the subcontractors, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to help you.

    BUSINESS TAXATION

    This group of factsheets covers the taxation issues you need to consider for both unincorporated and corporate businesses

    c Expand All C Collapse All

    Please do get in touch if you would like further information about the Construction Industry Scheme (CIS). Whether you are a contractor or a subcontractor, at Adiva Accountants in London we can advise on the CIS for your business in Bromley, Kent and London.

    The whole CIS system is backed up by a series of significant penalties. These penalties cover situations in which an incorrect monthly return is sent in negligently or fraudulently. Or for failure to provide CIS records for HMRC to inspect and incorrect declarations about employment status. Penalties are triggered by late returns under the CIS scheme as follows:

    • a basic penalty of £100 for failure to meet due date of the 19th of the following month
    • where the failure continues after two months after the due date, a penalty of £200
    • after six months, the penalty rises to the greater of 5% of the tax, or £300
    • after 12 months, the penalty will again be the greater of £300, or 5% of the tax
    • where information is withheld deliberately, the penalty is 70% of tax, or £1,500 if greater
    • where the withholding of information is deliberate and concealed, it will be 100% of the tax, or £3,000 if greater
    • where the return is 12 months late, but the information only relates to persons registered for gross payment (so no tax deduction was due). The penalty will be £1,500 for deliberate withholding without concealment, and the penalty will be £3,000 for deliberate and concealed withholding of information
    • where a person has just entered the CIS scheme penalties will be restricted to a maximum of £3,000 in certain circumstances

    If you need help with penalties, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to help you.

    There are three requirements for subcontractors to be paid gross. They include a business test, a turnover test and a compliance test. To qualify for gross payment a subcontractor must:

    • have paid their tax and National Insurance on time in the past
    • do construction work (or provides labour for it) in the UK
    • run the business through a bank account.

    The turnover for the last 12 month (ignoring VAT and the cost of materials) must be at least:

    • £30,000 for a sole trader
    • £30,000 for each partner in a partnership, or at least £100,000 for the whole partnership
    • £30,000 for each director of a company, or at least £100,000 for the whole company

    If your company is controlled by 5 people or fewer, you must have an annual turnover of £30,000 for each of them.

    Subcontractors not registered with the HMRC will suffer the higher rate deduction (30%) from any payments made to them by contractors.

    The contractor has to contact HMRC to find if he should pay a subcontractor gross or net. You don’t have to verify all the subcontractors all the time. You would normally verify only the new ones. The verification procedure will establish which of the following payment options apply:

    • gross payment (no deductions made)
    • a standard rate deduction of 20%
    • a deduction made at the higher rate of 30%, if the subcontractor has not registered for CIS with HMRC. Or cannot provide accurate details to the contractor and HMRC cannot verify them.

    HMRC will give the contractor a verification number for the subcontractors which will be matched with HMRC’s own computer. This number will be the same for each subcontractor verified at any particular time. Subcontractors who cannot be verified will have special suffixes for the numbers. The numbers are also shown on the payslips issued to the subcontractors and on contractors’ monthly returns.

    These numbers are important and contractors have to ensure that they have a good system in place for obtaining and retaining them. It is crucially important to give precise details to HMRC. As the higher rate deduction (30%) will have to be made, if their computer does not recognise the subcontractor. Mandatory online verification of subcontractors will be introduced from 6 April 2017.

    The contractor will not have to verify the subcontractor if they have already included them on any monthly return in the two previous tax years.

    Payslips

    All subcontractors have to be provided with at least a monthly ‘payslip’. It should show the total amount of the payments and how much tax, if any, has the contractor deducted from those payments. Payslips can have different styles, but certain specific information has to be provided including the:

    • contractor’s name and their employer tax reference
    • subcontractor’s name, unique tax reference or specific subcontractor reference
    • tax month to which the payment relates
    • the gross amount of the payment
    • cost of any materials which have reduced the gross payment
    • amount of any tax deductions made and
    • verification number where deduction has been made at the higher rate of 30%.

    If contractors include such payments as part of their normal payroll system, it has to be clear that they are classed as self-employed.

    If you need help with the payroll of the subcontractors, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to assist you.

    Not always. The items below should be excluded when entering the gross amount of payment on the monthly return:

    • VAT charged by the subcontractor (if the subcontractor is registered for VAT)
    • any Construction Industry Training Board levy.

    Furthermore, when working out the amount of payment from which the deduction should be made, the following items should be deducted from the gross amount of payment:

    • what the subcontractor paid for materials including VAT paid (if the subcontractor is not registered for VAT). Plus consumable stores, fuel (except fuel for travelling) and plant hire used in the construction operations
    • the cost of manufacture or prefabrication of materials used in the construction operations.

    The gross amount of payment and the amount from which the deduction is made should include any travelling expenses (including fuel costs) and subsistence paid to the subcontractor.

    The deadline for paying over the deductions

    The deadline for the contractors to pay over all deductions made from subcontractors is by the 19th following the end of the tax month to which the deductions relate. The deadline would be 22nd, if payment is being made electronically, or the next earlier banking day when the 22nd is a weekend or holiday. Often the contractor is a company which operates as a subcontractor and has deductions made from its payments as a subcontractor. In these circumstances, the deductions made may be set against the company’s liabilities for PAYE, NI and any CIS deductions it is due to pay over.

    Subcontractors

    A subcontractor will need to register for the CIS when first starts working in the construction industry on a self-employed basis. The registration is carried out by the subcontractor who needs to contact HMRC by phone or online.

    If you need help with the registration of the subcontractors, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to help you.

    BOOKKEEPING

    This group of factsheets covers information on employment law related topics relevant to both employers and employees. It covers bookkeeping, payroll and company secretarial.

    c Expand All C Collapse All

    Please do get in touch if you would like further information about the Construction Industry Scheme (CIS). Whether you are a contractor or a subcontractor, at Adiva Accountants in London we can advise on the CIS for your business in Bromley, Kent and London.

    The whole CIS system is backed up by a series of significant penalties. These penalties cover situations in which an incorrect monthly return is sent in negligently or fraudulently. Or for failure to provide CIS records for HMRC to inspect and incorrect declarations about employment status. Penalties are triggered by late returns under the CIS scheme as follows:

    • a basic penalty of £100 for failure to meet due date of the 19th of the following month
    • where the failure continues after two months after the due date, a penalty of £200
    • after six months, the penalty rises to the greater of 5% of the tax, or £300
    • after 12 months, the penalty will again be the greater of £300, or 5% of the tax
    • where information is withheld deliberately, the penalty is 70% of tax, or £1,500 if greater
    • where the withholding of information is deliberate and concealed, it will be 100% of the tax, or £3,000 if greater
    • where the return is 12 months late, but the information only relates to persons registered for gross payment (so no tax deduction was due). The penalty will be £1,500 for deliberate withholding without concealment, and the penalty will be £3,000 for deliberate and concealed withholding of information
    • where a person has just entered the CIS scheme penalties will be restricted to a maximum of £3,000 in certain circumstances

    If you need help with penalties, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to help you.

    There are three requirements for subcontractors to be paid gross. They include a business test, a turnover test and a compliance test. To qualify for gross payment a subcontractor must:

    • have paid their tax and National Insurance on time in the past
    • do construction work (or provides labour for it) in the UK
    • run the business through a bank account.

    The turnover for the last 12 month (ignoring VAT and the cost of materials) must be at least:

    • £30,000 for a sole trader
    • £30,000 for each partner in a partnership, or at least £100,000 for the whole partnership
    • £30,000 for each director of a company, or at least £100,000 for the whole company

    If your company is controlled by 5 people or fewer, you must have an annual turnover of £30,000 for each of them.

    Subcontractors not registered with the HMRC will suffer the higher rate deduction (30%) from any payments made to them by contractors.

    The contractor has to contact HMRC to find if he should pay a subcontractor gross or net. You don’t have to verify all the subcontractors all the time. You would normally verify only the new ones. The verification procedure will establish which of the following payment options apply:

    • gross payment (no deductions made)
    • a standard rate deduction of 20%
    • a deduction made at the higher rate of 30%, if the subcontractor has not registered for CIS with HMRC. Or cannot provide accurate details to the contractor and HMRC cannot verify them.

    HMRC will give the contractor a verification number for the subcontractors which will be matched with HMRC’s own computer. This number will be the same for each subcontractor verified at any particular time. Subcontractors who cannot be verified will have special suffixes for the numbers. The numbers are also shown on the payslips issued to the subcontractors and on contractors’ monthly returns.

    These numbers are important and contractors have to ensure that they have a good system in place for obtaining and retaining them. It is crucially important to give precise details to HMRC. As the higher rate deduction (30%) will have to be made, if their computer does not recognise the subcontractor. Mandatory online verification of subcontractors will be introduced from 6 April 2017.

    The contractor will not have to verify the subcontractor if they have already included them on any monthly return in the two previous tax years.

    Payslips

    All subcontractors have to be provided with at least a monthly ‘payslip’. It should show the total amount of the payments and how much tax, if any, has the contractor deducted from those payments. Payslips can have different styles, but certain specific information has to be provided including the:

    • contractor’s name and their employer tax reference
    • subcontractor’s name, unique tax reference or specific subcontractor reference
    • tax month to which the payment relates
    • the gross amount of the payment
    • cost of any materials which have reduced the gross payment
    • amount of any tax deductions made and
    • verification number where deduction has been made at the higher rate of 30%.

    If contractors include such payments as part of their normal payroll system, it has to be clear that they are classed as self-employed.

    If you need help with the payroll of the subcontractors, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to assist you.

    Not always. The items below should be excluded when entering the gross amount of payment on the monthly return:

    • VAT charged by the subcontractor (if the subcontractor is registered for VAT)
    • any Construction Industry Training Board levy.

    Furthermore, when working out the amount of payment from which the deduction should be made, the following items should be deducted from the gross amount of payment:

    • what the subcontractor paid for materials including VAT paid (if the subcontractor is not registered for VAT). Plus consumable stores, fuel (except fuel for travelling) and plant hire used in the construction operations
    • the cost of manufacture or prefabrication of materials used in the construction operations.

    The gross amount of payment and the amount from which the deduction is made should include any travelling expenses (including fuel costs) and subsistence paid to the subcontractor.

    The deadline for paying over the deductions

    The deadline for the contractors to pay over all deductions made from subcontractors is by the 19th following the end of the tax month to which the deductions relate. The deadline would be 22nd, if payment is being made electronically, or the next earlier banking day when the 22nd is a weekend or holiday. Often the contractor is a company which operates as a subcontractor and has deductions made from its payments as a subcontractor. In these circumstances, the deductions made may be set against the company’s liabilities for PAYE, NI and any CIS deductions it is due to pay over.

    Subcontractors

    A subcontractor will need to register for the CIS when first starts working in the construction industry on a self-employed basis. The registration is carried out by the subcontractor who needs to contact HMRC by phone or online.

    If you need help with the registration of the subcontractors, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to help you.

    BUSINESS STARTUP

    This group of factsheets covers the issues to consider when starting up in business. Management accounts and year end accounts are covered too.

    c Expand All C Collapse All

    Please do get in touch if you would like further information about the Construction Industry Scheme (CIS). Whether you are a contractor or a subcontractor, at Adiva Accountants in London we can advise on the CIS for your business in Bromley, Kent and London.

    The whole CIS system is backed up by a series of significant penalties. These penalties cover situations in which an incorrect monthly return is sent in negligently or fraudulently. Or for failure to provide CIS records for HMRC to inspect and incorrect declarations about employment status. Penalties are triggered by late returns under the CIS scheme as follows:

    • a basic penalty of £100 for failure to meet due date of the 19th of the following month
    • where the failure continues after two months after the due date, a penalty of £200
    • after six months, the penalty rises to the greater of 5% of the tax, or £300
    • after 12 months, the penalty will again be the greater of £300, or 5% of the tax
    • where information is withheld deliberately, the penalty is 70% of tax, or £1,500 if greater
    • where the withholding of information is deliberate and concealed, it will be 100% of the tax, or £3,000 if greater
    • where the return is 12 months late, but the information only relates to persons registered for gross payment (so no tax deduction was due). The penalty will be £1,500 for deliberate withholding without concealment, and the penalty will be £3,000 for deliberate and concealed withholding of information
    • where a person has just entered the CIS scheme penalties will be restricted to a maximum of £3,000 in certain circumstances

    If you need help with penalties, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to help you.

    There are three requirements for subcontractors to be paid gross. They include a business test, a turnover test and a compliance test. To qualify for gross payment a subcontractor must:

    • have paid their tax and National Insurance on time in the past
    • do construction work (or provides labour for it) in the UK
    • run the business through a bank account.

    The turnover for the last 12 month (ignoring VAT and the cost of materials) must be at least:

    • £30,000 for a sole trader
    • £30,000 for each partner in a partnership, or at least £100,000 for the whole partnership
    • £30,000 for each director of a company, or at least £100,000 for the whole company

    If your company is controlled by 5 people or fewer, you must have an annual turnover of £30,000 for each of them.

    Subcontractors not registered with the HMRC will suffer the higher rate deduction (30%) from any payments made to them by contractors.

    The contractor has to contact HMRC to find if he should pay a subcontractor gross or net. You don’t have to verify all the subcontractors all the time. You would normally verify only the new ones. The verification procedure will establish which of the following payment options apply:

    • gross payment (no deductions made)
    • a standard rate deduction of 20%
    • a deduction made at the higher rate of 30%, if the subcontractor has not registered for CIS with HMRC. Or cannot provide accurate details to the contractor and HMRC cannot verify them.

    HMRC will give the contractor a verification number for the subcontractors which will be matched with HMRC’s own computer. This number will be the same for each subcontractor verified at any particular time. Subcontractors who cannot be verified will have special suffixes for the numbers. The numbers are also shown on the payslips issued to the subcontractors and on contractors’ monthly returns.

    These numbers are important and contractors have to ensure that they have a good system in place for obtaining and retaining them. It is crucially important to give precise details to HMRC. As the higher rate deduction (30%) will have to be made, if their computer does not recognise the subcontractor. Mandatory online verification of subcontractors will be introduced from 6 April 2017.

    The contractor will not have to verify the subcontractor if they have already included them on any monthly return in the two previous tax years.

    Payslips

    All subcontractors have to be provided with at least a monthly ‘payslip’. It should show the total amount of the payments and how much tax, if any, has the contractor deducted from those payments. Payslips can have different styles, but certain specific information has to be provided including the:

    • contractor’s name and their employer tax reference
    • subcontractor’s name, unique tax reference or specific subcontractor reference
    • tax month to which the payment relates
    • the gross amount of the payment
    • cost of any materials which have reduced the gross payment
    • amount of any tax deductions made and
    • verification number where deduction has been made at the higher rate of 30%.

    If contractors include such payments as part of their normal payroll system, it has to be clear that they are classed as self-employed.

    If you need help with the payroll of the subcontractors, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to assist you.

    Not always. The items below should be excluded when entering the gross amount of payment on the monthly return:

    • VAT charged by the subcontractor (if the subcontractor is registered for VAT)
    • any Construction Industry Training Board levy.

    Furthermore, when working out the amount of payment from which the deduction should be made, the following items should be deducted from the gross amount of payment:

    • what the subcontractor paid for materials including VAT paid (if the subcontractor is not registered for VAT). Plus consumable stores, fuel (except fuel for travelling) and plant hire used in the construction operations
    • the cost of manufacture or prefabrication of materials used in the construction operations.

    The gross amount of payment and the amount from which the deduction is made should include any travelling expenses (including fuel costs) and subsistence paid to the subcontractor.

    The deadline for paying over the deductions

    The deadline for the contractors to pay over all deductions made from subcontractors is by the 19th following the end of the tax month to which the deductions relate. The deadline would be 22nd, if payment is being made electronically, or the next earlier banking day when the 22nd is a weekend or holiday. Often the contractor is a company which operates as a subcontractor and has deductions made from its payments as a subcontractor. In these circumstances, the deductions made may be set against the company’s liabilities for PAYE, NI and any CIS deductions it is due to pay over.

    Subcontractors

    A subcontractor will need to register for the CIS when first starts working in the construction industry on a self-employed basis. The registration is carried out by the subcontractor who needs to contact HMRC by phone or online.

    If you need help with the registration of the subcontractors, or for anything else in relation to CIS scheme, please contact us at Adiva Accountants in London and we will be happy to help you.

    Back To Top