Construction Industry Scheme (CIS)
Construction Industry Scheme is run by HMRC and it stipulates the payment rules for all businesses and organisations involved in the construction industry.
Construction Industry Scheme does not refer to employees. The scheme applies only to limited companies, partnerships and self-employed persons.
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