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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: construction industry scheme (CIS): introduction

This Chapter relates to the Construction Industry Scheme (CIS) and includes

  • background information on:

    • the Construction Industry Tax Deduction Scheme (CITDS) which was in operation until 31-07-1999
    • the Construction Industry Scheme which was in operation from 01-08-1999 until 05-04-2007
    • the Construction Industry Scheme (Reform) which has been in operation from 06-04-2007
  • procedural guidance
  • technical guidance

for matters which may arise from Construction Industry Review / Intervention work.

When examining payments made to subcontractors the caseworker’s main objectives are to make sure that:

  • payments made under the Scheme correctly fall within the scope of the Scheme
  • the Scheme is being operated correctly.

Comprehensive guidance on the Construction Industry Schemes, including more detailed explanations of some of the areas mentioned within this Chapter can be found in the

  • Construction Industry Scheme Manual
  • Construction Industry Scheme (Reform) Manual.

Both manuals can be found on the Intranet (Library / Procedural Guidance).

Reviews of contractors will be conducted using a Risk Based Systems Audit approach. COG905075.

Guidance on conducting a review using RBSA can be found at

When recovery is appropriate the caseworker must follow the guidance at COG915000 onwards.