Construction Industry Scheme (CIS) Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractorâs payments and pass it to HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractorâs tax and National Insurance. Contractors must register for the scheme.
Depreciation and Amortization. Not all G&A expenses represent cash leaving the company. Depreciation and amortization expenses are a result of the matching principle of accounting. This principle tells us that we should match the costs of producing revenue to the period when the revenue is produced.
This periodic amortization of the cost of the asset is called depreciation. It is an expired portion of the cost of the asset due to usage or wear and tear. The reason it is non-cash expense for the period is that because it is but an amortized cost of something already paid for in the past. Source(s): rainkissed Â· 6 years ago.