Construction Industry Scheme

If you work within the construction industry and are self-employed or own your own company; and are working for a contractor, you must be CIS (Construction Industry Scheme) registered as a subcontractor. CIS only applies to construction workers who are self-employed, not to those who are employed by a contractor. If you have a contract of employment with a construction company, you do not need to register for the Construction Industry Scheme.

The Construction Industry Scheme regulates payments from contractors to subcontractors, and is controlled and administered by HMRC. As a subcontractor, you will be required to have the following:

The name you want to register with (eg your name, business name)
The unique taxpayer reference number (UTR) for your business. If you don’t have a UTR, you must register for Self Assessment before you register with the CIS.
A National Insurance Number

Deductions will be made by your contractor for the Construction Industry Scheme from payments they make to you. When you complete your self-assessment, these payments your contractor has made will count as part of your tax and national insurance payments. If you or your business qualifies, you may be able to apply for Gross Payment Status, where there will be no deductions made from your payments. If your business is based abroad, but you still undertake construction work in the U.K, you must still register for the Construction Industry Scheme. It is essential that you keep clear records of business income and expenditure in order to accurately complete your self assessment and any other reports requested by HMRC.

For further information, contact us or The Hollies Bookkeeping Services, who will be happy to help you register for the Construction Industry Scheme. Alternatively, cal the CIS helpline from HRMC on 0300 200 3210. HMRC will be able to help you decide if you need to register for CIS.

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