In this section:
- Reporting changes to a subcontractor business
- Reporting changes to a contractor business
Reporting changes to a subcontractor business
If your business is registered as a subcontractor under the Construction Industry Scheme (CIS), you need to tell HM Revenue & Customs (HMRC) as soon as possible about certain changes in your business circumstances. We may need to update our own records and, if necessary, make changes to your registration status.
It's particularly important to report any business structure/ownership changes to us. If you don't it may affect how and what you are paid by your contractor.
If you're an agent for a CIS registered business you may need to report a change in business circumstances to us on behalf of your client.
If you're also a contractor, please see our related guide 'Reporting changes if you're a CIS contractor' under 'More useful links' at the end of the page.
On this page:
- Subcontractor - change of business structure/ownership
- Subcontractor business ceases trading
- Subcontractor change of address
- Getting help and advice
Subcontractor - change of business structure/ownership
We need to know if the structure or ownership of your subcontractor business changes. This is because your CIS registration won't move over automatically to the changed business - you'll need to register again for CIS. Read the sections below to find out more about the different types of change.
Subcontractor becomes a partnership
A partnership is two or more people - or companies - who work together and share the profits from one business they control.
If you work as a sole trader subcontractor you might decide to get together with one or more other people to form a partnership. Or two or more existing partnerships might get together to form one larger partnership.
If this happens, the structure and control of your business will change. You'll need to tell us about the change as soon as possible. You can't carry on using your sole trader CIS registration - or an old partnership registration - for the new partnership.
Your new partnership business needs to register for CIS as a subcontractor. If you want the new business to be able to get payments without any deductions taken off, you'll also need to apply for gross payment status.
If any of the partners leaves the partnership - or a new partner joins the business - you should tell us as soon as you can. Call our CIS Helpline on Tel 0845 366 7899 to tell us (open from 8.00 am to 8.00 pm seven days a week).
Find out how to register a new business as a subcontractor
Subcontractor becomes a sole trader
A sole trader is an individual who runs a business on their own.
If business partners split up and start trading individually, there's no longer a partnership. If this happens to your business and you start trading on your own as a sole trader, tell us straight away. None of the former partners can use the old partnership's CIS registration for their new sole trader business.
This also applies if you were a director of a CIS registered company and you start up in business on your own as a sole trader. You can't keep using the old company's CIS registration - whether the company still exists or not. You'll have to apply for your own CIS registration as a sole trader business.
Find out how to register a new business as a subcontractor
Subcontractor becomes a company
A company is a body that's legally separate from the person or people who own the shares in it and control it. Even though some companies are large businesses, it's possible for one person to be the only director and the only employee of a company. But this isn't the same as being a sole trader.
As your business grows you might decide to start trading through a company. This is known as 'incorporating' a business.
For example, a new company might be formed if:
- a sole trader or partnership transferred their business into a new company
- two or more sole traders or partnership businesses came together and started trading as a combined business through a company
The new company is always treated as a brand new business. This is the case even if the company takes over all the tools, people and assets from the old business or businesses.
A newly formed company will need to apply to us for a new CIS registration. If you want your new company to be paid without any deductions taken off it must also apply for gross payment status.
Find out how to register a new business as a subcontractor
Company subcontractors - change of control
The shares in many smaller companies are often held in one of the following ways:
- mostly by family members
- by individuals who are all directors of the company
- by five or fewer persons
These types of company are called 'close companies'.
One person is said to control a close company if they own more than 50 per cent of the company's shares. If one individual plus their relatives together own more than 50 per cent of the company's shares then that group of people is said to control the close company.
If your company is a close company you must tell us if control of the company moves from one person to another - or from one group of people to another. This can happen when:
- shares are issued or transferred to someone who didn't hold shares in the company before
- new shares are issued so the percentage of all the shares that's held by each individual shareholder changes
You need to give us the names and addresses of any new shareholders within 30 days of their shares being transferred or issued. It's really important to do this promptly. We may withdraw the company's gross payment status if you don't keep us up to date.
You should call our CIS Helpline as soon as you are aware of any changes on Tel 0845 366 7899.
Subcontractor business ceases trading
You should tell us as soon as possible if your subcontractor business ceases to trade. You can call our CIS Helpline on Tel 0845 366 7899 from 8.00 am until 8.00 pm seven days a week.
Payments after you cease trading
If your subcontractor company goes into administration, receivership or liquidation it can keep receiving payments for work it's done under CIS. It should be paid in the same way that it was paid normally - either gross or net of deductions.
For example, if your company had gross payment status before the liquidator was called in, you should keep getting paid gross for any money that's still due to you under CIS.
Subcontractor - change of address
You should call our CIS Helpline on Tel 0845 366 7899 as soon as possible if you're changing any of these addresses:
- the address that you trade from
- your registered office address
- your own private address
The helpline is open from 8.00 am until 8.00 pm seven days a week.
Getting help and advice
If you've got any questions about the types of change you need to tell us about under CIS you can call our CIS Helpline on Tel 0845 366 7899. If a change has happened - or is about to happen soon - you can also use the helpline to contact us and let us know. You'll need to have all the relevant details of the change to hand.
The CIS Helpline is open from 8.00 am to 8.00 pm seven days a week except Christmas Day, Boxing Day and New Year's Day.
More useful links
Reporting changes if you're a CIS contractor
Find out about contractors' obligations under CIS
