construction industry scheme (CIS)

Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC).  The deductions count as advance payments towards the subcontractor’s tax and National Insurance.  Contractors must register for the scheme. Subcontractors do not have to register, but deductions are taken from their payments at a higher rate if they’re not registered.

 Work covered by CIS

CIS covers most construction work to:

  • a permanent or temporary building or structure

  • civil engineering work like roads and bridges

You do not have to register if you only do certain jobs, including:

  • architecture and surveying

  • scaffolding hire (with no labour)

  • carpet fitting

  • making materials used in construction including plant and machinery

  • delivering materials

  • work on construction sites that’s clearly not construction - for example, running a canteen or site facilities

Bloomfield Accountancy can register your business as a contractor or a sub-contractor and can provide you with CIS compliant payroll.  We can also ensure that all your sub-contractors are verified and that you pay the correct contributions at all times.