What you must do as a Construction Industry Scheme (CIS) subcontractor

1. Overview

You should register for the Construction Industry Scheme (CIS) if you work for a contractor and you’re one of the following:

  • self-employed
  • the owner of a limited company
  • a partner in a partnership or trust

Under CIS, a contractor must deduct 20% from your payments and pass it to HM Revenue and Customs (HMRC).

These deductions count as advance payments towards your tax and National Insurance bill.

If you don’t register for the scheme, contractors must deduct 30% from your payments instead.

If you don’t want deductions made

If you don’t want deductions to be made in advance by contractors, you can apply for ‘gross payment status’. You can do this when you register for CIS.

You don’t need to register for CIS if you’re an employee. Check your employment status if you’re not sure.