As a rule, CIS contractors pay subcontractors for carrying out construction work. Besides registering with HMRC, you have other responsibilities as a Construction Industry Scheme (CIS) contractor.
Often, CIS contractors are construction companies and building firms. They can also be government departments or local authorities (referred to as 'clients').
This section explains the rules that CIS contractors must follow and their obligations in the construction industry.
You will need to register as a contractor with the Construction Industry Scheme (CIS) if:
Your obligations as a CIS contractor would still apply whether you are a sole trader, in a business partnership, or you own a limited company.
The CIS scheme covers all types of construction work carried out in the United Kingdom. It includes jobs such as site preparation, making alterations, dismantling, and demolition.
CIS contractor regulations also include UK territorial waters up to the 12-mile limit. Check who the scheme covers if you are unsure whether you need to register (see below).
Note: Read CIS 340 guidance for further details on the payment rules to subcontractors for construction work. It also explains the duties of contractors and subcontractors within the Construction Industry Scheme (CIS).
The Construction Industry Scheme (CIS) includes mainstream contractors and deemed contractors. Check who is covered by CIS and what kind of work qualifies as exceptions for contractors.
As a CIS contractor, you can make deductions and pay subcontractors for construction work. The section explains how to make a CIS deduction and pay deductions to HMRC.
As a mainstream CIS contractor, you must file monthly returns online with HM Revenue and Customs. You can also use commercial CIS software but there are penalties for filing late returns.
What You Must Do as a Construction Industry Scheme (CIS) Contractor in United Kingdom