In this section:

Managing agents and CIS

If you’re a managing agent and you enter into contracts for construction operations you must register as a contractor under the Construction Industry Scheme (CIS) and operate under its rules.

If your client enters into the contract then they count as the contractor and must operate under CIS.

On this page:

When the managing agent must operate CIS

If your client has passed full responsibility for arranging work on their property to you – including entering into contracts with the subcontractors who will be carrying out the construction operations - you count as a contractor under CIS.

Contractor obligations

As the contractor, you are responsible for:

  • registering as a contractor (unless already registered)
  • deciding on an individual subcontractor’s employment status
  • verifying subcontractors when necessary
  • making sure that payments to subcontractors are included in the relevant monthly return
  • filing a monthly return by the 19th of each month
  • providing a payment and deduction statement to the subcontractor
  • paying HM Revenue & Customs (HMRC)
  • any penalties incurred as a result for late submission of the monthly return or incorrect entries on the return

Read about contractor registration and obligations

Find out more about contractor monthly returns and record keeping

Multiple contractor status

If you have a number of branches, you can administer these separately by making a ‘multiple contractor election’ and operating the scheme on a branch basis.

Read about multiple contractors status

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When the client must operate CIS

Where you manage construction work using subcontractors who contract directly with the client then the client is the contractor and responsible for operating CIS.

In this situation, the managing agent will often:

  • use and manage subcontractors engaged by the contractor
  • find subcontractors who will contract direct with the client
  • make payments to subcontractors on behalf of the client
  • verify subcontractors when asked to do so by the client

If you make payments to the subcontractor on behalf of your client you must provide the client with details of all payments and deductions you’ve made so that the client can complete the monthly CIS return.

The client, as the contractor, will remain responsible for:

  • registering as a contractor (unless already registered)
  • deciding on an individual subcontractor’s employment status
  • verifying subcontractors when necessary
  • making sure that payments to subcontractors are included in the relevant monthly return
  • filing a monthly return by the 19th of each month
  • providing a payment and deduction statement to the subcontractor
  • paying HMRC
  • any penalties incurred as a result of late submission of the monthly return or incorrect entries on the return

Read about contractor registration and obligations

Find out more about contractor monthly returns and record keeping

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Getting help and advice

Every business is different. If you've got any questions about whether your business is affected by the CIS you can call HMRC’s CIS Helpline.

CIS Helpline

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More useful links

Decide whether your work comes within CIS

Reporting changes to a contractor business

Using or dealing with subcontractor trading names