You must register as a contractor with the Construction Industry Scheme (CIS) if:
- you pay subcontractors to do construction work
- your business does not do construction work but you have spent more than £3 million on construction in the 12 months since you made your first payment
You may be a sole trader, in a partnership or own a limited company.
If you’re not sure if you need to register, check who is covered by CIS.
Rules you must follow
You must register for CIS before you take on your first subcontractor.
Check with HM Revenue and Customs (HMRC) that your subcontractors are registered with CIS.
When you pay subcontractors, you’ll usually need to make deductions from their payments and pay the money to HMRC. Deductions count as advance payments towards the subcontractor’s tax and National Insurance bill.
You must let HMRC know about any changes to your business.