Register for the Construction Industry Scheme (CIS)

The Construction Industry Scheme (CIS) is a set of rules established by HM Revenue and Customs (HMRC) in the United Kingdom. It governs the way payments to subcontractors in the construction industry are handled to ensure the correct tax is deducted at the source.

The CIS aims to minimize tax evasion in the construction sector by ensuring that tax is deducted from payments made to subcontractors and paid directly to HMRC. This system helps to ensure that all contractors and subcontractors are contributing their fair share of taxes.

CIS

For Contractors:

Determine if you need to register:

    • You must register for CIS if you pay subcontractors to do construction work, your business spends an average of over £1 million a year on construction in any 3-year period, or you’re a property developer.
  1.  

Gather necessary information:

    • Your business’s legal structure (e.g., sole trader, partnership, or limited company).
    • Your Unique Taxpayer Reference (UTR) from HM Revenue and Customs (HMRC).
    • Your National Insurance number or company registration number.
    • The names and addresses of all partners if you’re in a partnership.
    • The name and office address of the company if you’re a limited company.

Register online:

    • Go to the HMRC website.
    • Log in to your Government Gateway account or create one if you don’t have one.
    • Select “Register for CIS.”
    • Follow the instructions to complete your registration.

Confirmation:

    • After registering, HMRC will send you a confirmation letter with your CIS registration details.

For Subcontractors:

Determine if you need to register:

    • You should register for CIS if you work for a contractor and get paid for construction work.
  2. Gather necessary information:
    • Your Unique Taxpayer Reference (UTR).
    • Your National Insurance number or company registration number.
    • Your business’s legal structure (e.g., sole trader, partnership, or limited company).
    • The names and addresses of all partners if you’re in a partnership.
    • The name and office address of the company if you’re a limited company.

Register online:

    • Go to the HMRC website.
    • Log in to your Government Gateway account or create one if you don’t have one.
    • Select “Register for CIS.”
    • Follow the instructions to complete your registration.

Confirmation:

    • HMRC will send you a confirmation letter once your registration is processed.

Additional Tips:

  • Keeping Records: Ensure you keep accurate records of all payments made and received under CIS. This includes invoices, payment receipts, and deduction statements.
  • Monthly Returns: Contractors must submit monthly CIS returns to HMRC, detailing payments made to subcontractors and any deductions.
  • CIS Deductions: Subcontractors will have a portion of their payment deducted by the contractor, which is then paid to HMRC. These deductions count as advance payments towards the subcontractor’s tax and National Insurance.

For more detailed information, you can visit the official HMRC website or contact their support for assistance.