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CIS Subcontractor Obligations for UK

As a rule, CIS subcontractors get paid by contractors for doing building and construction work. Besides registering with HMRC, you have other responsibilities as a CIS subcontractor. The information in this section explains the registration process and the procedures for getting paid. Find out how to pay tax and claim deductions as a CIS subcontractor.

There are several key reasons why CIS subcontractors should register for the Construction Industry Scheme (CIS).

Registration with HMRC would apply if you are working for a CIS contractor as any of the following:

  • Self-employed
  • A partner in a business partnership or a trust
  • The owner of a limited company

Deducting a percentage from subcontractor pay is part of the Construction Industry Scheme (CIS) rules in the United Kingdom.

In most cases, a contractor must deduct at least 20% and forward the payment it to HM Revenue and Customs (HMRC). The deductions count as an advance payment towards tax and National Insurance bills.

Depending on the situation, a contractor would pay a subcontractor gross or under deduction. But, contractors must deduct 30% from the payments of any subcontractors who have not registered for the CIS scheme.

Subcontractor Gross Payment Status

As a CIS subcontractor, you can choose not to have deductions made in advance by contractors. In this case, you should apply for ‘gross payment status’ when you register for CIS.

Note: If you are an employer you would not need to register for Construction industry Scheme (CIS). A different section explains how to check employment status if you are unsure.

ALSO IN THIS SECTION

How to Register for CIS Scheme

A guide explaining how to register for CIS as a subcontractor with information on registering as a sole trader. CIS subcontractors can also register as another type of business or when based abroad.

Getting Paid as CIS Subcontractor

Check out the procedures for subcontractors to get paid under the Construction Industry Scheme (CIS). Find out how deduction rates work and what does not count as your pay.

Paying Tax and Claiming Deductions

CIS subcontractors still need to pay tax and claim back deductions for accounting purposes. Check your duties as a sole trader, partner, or limited company and how to trace missing CIS statements.

Gross Payment Status Application

Anyone new to Construction Industry Scheme (CIS) may be wondering how to get gross payment status (GPS). Find out how to apply for gross payment status and pay tax once you have it.

HMRC Annual Review

HMRC will conduct a CIS gross payment status annual review of your business. Check what happens if you do not meet the conditions and what status changes you need to report (e.g. if you stop trading).

What You Must Do as a Construction Industry Scheme (CIS) Subcontractor in United Kingdom