{"id":12242,"date":"2023-07-05T10:49:35","date_gmt":"2023-07-05T10:49:35","guid":{"rendered":"https:\/\/www.theukrules.co.uk\/?page_id=12242"},"modified":"2023-09-11T05:26:59","modified_gmt":"2023-09-11T05:26:59","slug":"who-cis-covers","status":"publish","type":"page","link":"https:\/\/www.theukrules.co.uk\/rules\/business\/tax\/construction-industry-scheme\/contractor\/who-cis-covers\/","title":{"rendered":"Who is Covered by Construction Industry Scheme and Exceptions"},"content":{"rendered":"
Business Types Covered by the CIS Scheme<\/h2>\n
It incorporates all types of businesses and other concerns involved in the construction industry. CIS covers self-employed individuals (sole traders), business partnerships, and companies.<\/p>\n
In fact, the Construction Industry Scheme covers almost all construction work to buildings. It also includes site preparation, decorating, repairs, refurbishment, and demolition.<\/p>\n
The terms of ‘contractor’ and ‘subcontractor’ have special meanings under the scheme. The definitions cover more than the term of ‘construction’.<\/p>\n
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Who is a ‘Mainstream’ Contractor?<\/h5>\n
Mainstream contractors would have construction as their main business and they would be paying subcontractors for construction work. Thus, you can be a ‘mainstream’ contractor as a:<\/p>\n
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Builder (or speculative builder)<\/li>\n
Foreign business carrying out construction operations in the United Kingdom<\/li>\n
Gangmaster (or gang leader)<\/li>\n
Labour agency<\/li>\n
Property developer<\/li>\n<\/ul><\/div>\n
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Who are ‘Deemed’ Contractors?<\/h5>\n
As a rule, you would count as a ‘deemed’ contractor for CIS purposes, even if you operate outside the mainstream construction industry, if:<\/p>\n
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Your business commissions construction work on a regular basis.<\/li>\n
You spend an average of more than \u00a31 million a year on construction (in any 3-year period).<\/li>\n<\/ul>\n
Note<\/strong>: Deemed contractors can be housing associations or arm’s length management organisations (ALMO). They can be local authorities, or government departments.<\/p>\n<\/p><\/div>\n<\/div>\n
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Work Exceptions for CIS Contractors<\/h5>\n
Some types of building work does not operate under the Construction Industry Scheme (CIS). For example, the work would not apply for CIS if it is:<\/p>\n
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Paid for by a body of persons or trust established ‘solely’ for charitable purposes.<\/li>\n
Paid for by a governing body or the head teacher of a maintained school on behalf of the local education authority.<\/li>\n
Carried out on land owned by a subcontractor who is receiving payment. The work must amount to a value under \u00a31,000 (excluding materials).<\/li>\n<\/ul>\n
As a deemed contractor, you may not need to apply the CIS scheme if you are paying for:<\/p>\n
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Work on property used for your own business (providing it is not for sale or for rent).<\/li>\n
A construction contract valued under \u00a31,000 (excluding materials).<\/li>\n<\/ul>\n
Note<\/strong>: You would need to contact the Construction Industry Scheme (CIS) helpline to confirm any exemptions.<\/p>\n