Knowledge

Construction Industry Scheme

Construction Industry Scheme (CIS), which is run by HM Revenue & Customs stipulates the rules regarding payments for all businesses and organizations constantly or temporarily operating in the construction industry. Construction Industry Scheme applies only to the self-employed, partnerships, limited companies and organizations. It does not apply to employees.

If your business is involved in construction work, you probably have to register with the CIS either as a contractor or subcontractor or a contractor and subcontractor at the same time.

If you are in a construction business or if you are involved in a construction work in any other way, you should immediately:

  • Check if you are a contractor or a subcontractor under the Construction Industry Scheme
  • Register with HM Revenue and Customs for the the Construction Industry Scheme
  • Check whether your subcontractors are registered with HMRC for the CIS
  • Make deductions from subcontractors’ payments and transfer it to HMRC
  • Pay subcontractors and issue statements for them
  • Prepare and send CIS returns to HMRC
  • Keep CIS records

 

Help and advice
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