A Blackpool based firm of Chartered Accountants has successfully acquired the much coveted Subcontractors Tax Certificate (CIS6) from HM Revenue and Customs which will allow their client subcontractors to pay less tax.

Danbro is delighted with the news which will mean that when contracting companies or agencies pay Danbro for services provided by employees (sub contractors) that work in the construction industry, they do not have to deduct the usual 18 percent tax before payment is made.

Damien Broughton, partner at Danbro, comments: “We are delighted to have received this document. Major changes are being made to the Construction Industry Scheme (CIS) throughout the next year, which will greatly effect payments made by contractors to subcontractors who work within the industry. Under the new proposals the Revenue, who already advise contractors to deduct a whopping 18 percent tax from subcontractors without a CIS6 certificate, may issue an even higher rate, yet to be announced.

“Consequently, as we are a company so deeply rooted in the construction industry, we felt that it was of the utmost importance to procure this document for the benefit of the firm and our client subcontractors. The certificate will work to help us to help our subcontractors, by avoiding the cumbersome financial and administrative implications of pre gross pay taxes.”

Under the rules and regulations issued in the CIS, not everyone is entitled to receive a Tax Certificate. The majority of subcontractors hold their own registration cards and can only receive payments after deduction on account of tax and National Insurance contributions (NICs). Only subcontractors with a [Danbro] CIS6 tax certificate can be paid fully by their contractor.

For more information please contact Danbro Accounting Ltd on 01253 600 140.