The CIS sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry.

The scheme applies mainly to contractors and subcontractors in mainstream construction work, however businesses or organisations whose core activity isn't construction but have a high annual spend on construction may also count as contractors and fall under the scheme.

Getting started with CIS - contractors, subcontractors, tax and managing agents

What contractors need to do under CIS.

As a contractor you have certain obligations under the scheme, including registering with the scheme, checking whether your subcontractors are registered with HM Revenue & Customs (HMRC), paying subcontractors and submitting monthly returns.

Contractor registration and obligations

What subcontractors need to do under CIS

If you are a subcontractor, you need to register with HMRC - as well as your main business name you can register up to one trading name. You must also keep HMRC informed of any changes to your business (including changes to the structure, address, business name, partners etc.) Note: You can register each contract worker once logged into your Invoicing and tax software or the contract worker can register themselves when they login to their Invoicing and tax bookkeeping software.

Subcontractor registration and obligations

Acting as a tax agent for CIS contractors and subcontractors

If you're an agent acting for CIS clients you need to be authorised to Act for them. You can get authorisation online using HMRC Online Services if you're registered with the PAYE/CIS for Agents Service.

Find out what you need to do if you Act as a CIS agent

Managing agents and CIS

If you are a managing agent acting on behalf of a client - find out what your and your client’s responsibilities are under CIS.

Read about managing agents role under CIS

CIS for larger businesses, public bodies and non-UK businesses

CIS for larger businesses

If you're a larger contractor business you can choose to operate as a 'multiple contractor' under CIS. A multiple contractor is a contractor that has divided their business up into several sections, known as divisions, specifically for CIS purposes.

Find out about being a multiple contractor under CIS

CIS where construction isn't your main activity

Even if construction isn't your main activity, you'll need to register with HMRC as a CIS contractor if you spend more than a certain amount each year on 'construction operations' covered by the scheme. For example this might include public bodies such as local authorities.

Find out whether your non- construction business falls within CIS

Find out how CIS affects public bodies and organisations

CIS for businesses based outside the UK

You may still need to register with CIS even if your business is based overseas - follow the link to find out more.

Find out what you need to do under CIS if your business is overseas

Making payments and getting paid under CIS

If you are a contractor under CIS you need to follow certain rules when you are paying your subcontractors. If you are a subcontractor it's important that you register with HMRC and keep them informed of any changes to your business, to ensure that you are paid the correct amount.

Read about paying subcontractors under CIS

Find out about getting paid as a CIS subcontractor

Contractor monthly returns and record keeping under CIS

As a contractor under CIS you will need to make returns each month. Doing this online is quick and easy. If you make any mistakes HMRC can help you sort them out.

Find out how to submit your CIS monthly returns

Find out how to use our CIS Online Service

Find out how to correct any errors on your CIS returns

Read about late return penalties under CIS

Business changes you need to report under CIS

Whether you work as a contractor or subcontractor under CIS it's important to let HMRC know if there have been any changes to your business since you first registered with them (including address changes, changes to the legal structure of your business, liquidation or business ceasing to trade for any other reason).

Find out about reporting subcontractor business changes to HMRC under CIS

Find out about reporting contractor business changes to HMRC under CIS

 
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