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.
Contents: Amortization vs Depreciation. Cost Recovery. When a business spends money to acquire an asset, this asset could have a useful life beyond the tax year. Such expenses are called capital expenditures and these costs are recovered or written off over the useful life of the asset.