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

How to get gross payment status

You can apply for gross payment status when you register for CIS.

This means contractors will pay you in full, without deductions. You’ll pay all your tax and National Insurance at the end of the tax year.

If you’re already registered for CIS, you can apply for gross payment status by calling the CIS helpline or applying online.

Apply for gross payment status online

  1. Log in with your Government Gateway ID.

  2. From ‘Your tax account’, go to ‘Other services’.

  3. Choose ‘Construction Industry Scheme – Subcontractors’.

To qualify

You must show HM Revenue and Customs (HMRC) that your business passes some tests. You’ll need to show that:

  • you’ve paid your tax and National Insurance on time in the past
  • your business does construction work (or provides labour for it) in the UK
  • your business is run through a bank account

HMRC will look at your turnover for the last 12 months. Ignoring VAT and the cost of materials, your turnover must be at least:

  • £30,000 if you’re a sole trader
  • £30,000 for each partner in a partnership, or at least £100,000 for the whole partnership
  • £30,000 for each director of a company, or at least £100,000 for the whole company

If your company’s controlled by 5 people or fewer, you must have an annual turnover of £30,000 for each of them.

Paying tax when you have gross payment status

You must declare your payments as income at the end of the tax year in: