Construction Industry Scheme (CIS) Registration

You should register for the Construction Industry Scheme (CIS) if you work for a contractor and you are one of the following:

• • Self-employed
  • The owner of a Limited Company
  • A Partner in a partnership

Under CIS, a contractor must deduct 20% from your payments and pass it to HM Revenue and Customs (HMRC). These deductions count as advance payments towards your tax and National Insurance bill.

If you do not register for the scheme, contractors must deduct 30% from your payments instead.

If you do not want deductions made:

If you do not want deductions to be made in advance by contractors, you can apply for Gross payment status. This means contractors will pay you in full, without deductions. You will pay all your tax and National Insurance at the end of the tax year.

Pay Tax and claim back deductions

When you are registered with the Construction Industry Scheme (CIS), you are still responsible for paying the correct tax and National Insurance for your business, even if deductions have been made by contractors throughout the year.