What you must do as a Construction Industry Scheme (CIS) subcontractor
You should register for the Construction Industry Scheme (CIS) if you work for a contractor and you’re one of the following:
- 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
You don’t need to register for CIS if you’re an employee. Check your employment status if you’re not sure.