In this section:
- What is the Construction Industry Scheme?
- Deciding whether your work comes within CIS
- Are you a contractor or subcontractor under CIS?
- Employment Status Indicator tool
What is the Construction Industry Scheme?
The Construction Industry Scheme (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.
The scheme was extensively revised in April 2007 and the information contained in this guidance relates to the latest CIS rules.
On this page:
- Checking whether CIS applies to you
- Getting started with CIS - contractors, subcontractors and agents
- CIS for larger businesses, public bodies and non-UK businesses
- Making payments and getting paid under CIS
- Contractor monthly returns and record keeping under CIS
- Business changes you need to report under CIS
- CIS forms, factsheets and glossary
- Getting more help with CIS
Checking whether CIS applies to you
You can check whether CIS applies to your business and whether you count as a contractor, subcontractor (or both) under the scheme by reading the guidance below.
Deciding whether your work comes within CIS
Are you a contractor or subcontractor under CIS?
Getting started with CIS - contractors, subcontractors and 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 HMRC, paying subcontractors and submitting monthly paperwork.
Read an overview of contractor obligations under CIS
What subcontractors need to do under CIS
If you are a subcontractor, your main obligation is to register with HM Revenue & Customs (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).
Read about CIS subcontractors' obligations
Find out about using trading names as a subcontractor under CIS
Acting as an 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
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 schools, charities and 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 monthly returns and submit certain paperwork 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
CIS forms, factsheets and glossary
As a contractor or subcontractor under CIS you will need to submit certain paperwork. HMRC have collected all the forms you will need in one area so that you can access them quickly and easily.
They have also included an explanation of some of the terms that you may come across when you start working under CIS.
Access CIS forms and factsheets
Read a glossary of terms used in CIS
Getting more help with CIS
Every business is different. If you've got any questions about whether your business is affected by CIS you can call HMRC’s CIS Helpline on Tel 0845 366 7899 (open from 8.00 am to 8.00 pm, seven days a week).
