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.
Capitalization, Amortization, and Depreciation Introduction In general, expenses are deductible if allowed by a specific code section. Capital expenditures, in contrast, are not deductible; instead, they must be added to the basis of an asset.or example, the cost of land must be capitalized and is never subject to depreciation or amortization recovery. In contrast, five years worth of pre-paid insurance must also be capitalized; however, it may then be amortized over the five-year life.