Time to Reconsider a CIS Gross Payment Application?

The advantages of obtaining CIS gross payment approval from HMRC include the following:

·         Customers and cash flow- apart from the positive impression on potential customers your cash flow will be boosted annually by 20% of the labour you invoice,

·         Invoicing- if you are approved for gross payment status your invoicing will be easier as you won’t need to separately show your charges for labour and materials on your invoices and

·         Simpler administration- this will simplify your payroll processing and you will not have to chase HMRC repeatedly to refund any CIS tax overpaid for a tax year, typically this takes six months.

For these reasons Marshall Smalley suggest you reconsider your position and apply for CIS gross payment status.

In order to obtain CIS gross payment status there are HMRC turnover and compliance tests that need to be satisfied. However, there is a right of appeal if HMRC decline an application on compliance grounds. 

If this is of interest please contact Marshall Smalley and  we can help you apply to HMRC for CIS gross payment status.