What is the CIS? Guide to the Construction Industry Scheme What is the Construction Industry Scheme (CIS)? In this post we look at what the scheme is, whether it applies to you and if you are a contractor or subcontractor. Contents hide 1 What is the Contruction Industry Scheme (CIS)? 2 What is the difference between a contractor and a subcontractor? 3 What types of work are covered by the Construction Industry Scheme (CIS) ? 4 What to do if your business is based outside of the UK 5 What is a CIS Accountant and How Can They Help Me? 6 Common mistakes when dealing with Construction Industry Scheme (CIS) 7 How do I contact HMRC about the Construction Industry Scheme (CIS)? What is the Contruction Industry Scheme (CIS)? In the Construction Industry Scheme (CIS), contractors deduct money from subcontractors‘ payments and pass it on to HM Revenue and Customs (HMRC). Subcontractor deductions count as advance payments towards the subcontractor’s taxes and NI. Contractors must register for the scheme. Subcontractors are not required to register, but if they aren’t, deductions are taken from their payments at a higher rate. What is the difference between a contractor and a subcontractor? You must register as a contractor if either you pay subcontractors for construction work your business does not do construction work but you have spent more than £3 million on construction in the 12 months since you made your first payment If you do construction work for a contractor then you will need to register as a subcontractor. What types of work are covered by the Construction Industry Scheme (CIS) ? The Construction Industry Scheme (CIS) covers most construction work to buildings, including site preparation, decorating and refurbishment. For a full list, read our blog post “What types of work are covered by the Construction Industry Scheme (CIS) ?“ What to do if your business is based outside of the UK The same CIS rules apply if your business is based outside the UK, CIS rules apply if your business is not based in the UK, but you perform construction work as a contractor or subcontractor in the UK. What is a CIS Accountant and How Can They Help Me? A CIS Accountant is a specialized financial professional with a deep understanding of the Construction Industry Scheme and the unique tax challenges it presents. Common mistakes when dealing with Construction Industry Scheme (CIS) As CIS accountants, we help you to navigate the complexities of the Construction Industry Scheme (CIS) on your behalf. We understand the mistakes that can be made when dealing with the HMRC. How do I contact HMRC about the Construction Industry Scheme (CIS)? Depending on whether you are a contractor or subcontractor, you need provide different information when you contact HMRC, we detail the information you need and the various methods of contacting the HRMC about your CIS account.

Introduction to the Construction Industry Scheme (CIS)