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.
Divide the start-up or organizational costs by the months in the amortization period, and thatâs how much you can deduct for each month. Multiply that amount by the number of months you were in business for the year, and thatâs the amount you amortize on that yearâs tax return.here are two amortization periods. For expenses you paid or incurred: 1  Before October 23, 2004, you can choose an amortization period of 60 months or more. 2  After October 22, 2004, the cost is amortized over 180 months.