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 can also be companies.
If you’re a contractor and subcontractor, you must register as both.
Other people and organisations covered by CIS
Apart from builders, CIS can also apply to:
- labour agencies and staff bureaux
- gangmasters (or gang leaders)
- property developers
Even if your organisation doesn’t do building work, you still have to register if you spend more than an average of £1 million a year on construction over a 3-year period.
Organisations where this could apply include:
- housing associations or ‘arm’s length’ management organisations (ALMOs)
- local authorities
- government departments
- other public bodies
There’s more information on who CIS applies to in the CIS guide for contractors and subcontractors.