Knowledge

Construction Industry Scheme (CIS)

WHAT IS THE CONSTRUCTION INDUSTRY SCHEME (CIS)?

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

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

If you run a construction business or you have to do with construction work in any other way, you should:

  • Check if you are a contractor or a subcontractor under CIS – See for more details What are CIS Works and Businesses?, What are not CIS Works and Businesses? and Contractor or Subcontractor?
  • Register with HM Revenue and Customs for the CIS – See for more details Contractor’s Obligations and Subcontractor’s Obligations.
  • Check whether your subcontractors are registered with HMRC for the CIS – See for more details Contractor’s Obligations.
  • To make deductions from subcontractors’ payments and transfer it to HMRC – See for more details Contractor’s Obligations.
  • To pay subcontractors and issue statements for them – See for more details Contractor’s Obligations.
  • Prepare and send CIS returns to HMRC – See for more details Contractor’s Obligations.
  • To keep CIS records – See for more details Contractor’s Obligations.

 

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