The Construction Industry Scheme (CIS) is administered by HM Revenue & Customs (HMRC). It regulates payments from contractors to subcontractors in the building industry.
All building contractors and subcontractors should register with the scheme.
Who is a CIS contractor?
Anyone who uses subcontractors for construction work needs to register as a CIS contractor with HMRC.
Who is a CIS subcontractor?
You’re a CIS subcontractor if you’re self-employed and agree to do construction work for a contractor. You should register with CIS.
Subcontractors and contractors can also be companies. More info....
What do you need to register?
It is not a problem, if you don’t have a UTR, we will register for Self Assessment before registering with the CIS.
Once you’ve registered with the CIS, you can apply for gross payment status if your business passes some tests. This is where you get your full payment without any deductions.
You must still register with CIS if you’re based abroad but do construction work in the UK - the registration process is different though, please let us know if you require such registration.
Your contractor will make CIS deductions from their payments to you after taking off the cost of any materials you supplied.
You must keep records of your business income and expenses relating to your work. You’ll need these to fill in your Self Assessment tax return.
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