The Construction Industry Scheme was set up by HMRC for more thorough processing of undeclared earnings in the building industry. Similar to PAYE, a subcontractor’s tax contributions will be deducted directly from their earnings by the contractor.

The key benefit for the subcontractor is that they pay 20% on their earnings, rather than 30% as an unregistered subcontractor.

So, for example, when a subcontractor earning £1500 a month on a site is paid, the contractor will have already deducted £300 and paid it to the HMRC on the subcontractor’s behalf. The balance of £1200 is then paid directly to the subcontractor.

Which professions are covered by the CIS?

According to the official HMRC GOV.UK login page, you need to register via the CIS login if your work includes:

• Preparing the site, including foundation works and providing access works.
• Demolition and dismantling
• Building work
• Alterations, repairs, and decorating.
• Installing systems for heating, lighting, power, water, and ventilation.
• Cleaning the inside of buildings after construction work.

Which professions are NOT covered by the CIS?

According to the official HMRC GOV.UK, login page you do NOT have to register in you do any of the following:

• Architecture and surveying
• Scaffolding hire (no labour)
• Carpet fitting
• Making materials used in construction (e.g., plant machinery)
• Delivering materials
• Running services that ‘serve’ the site but are not construction-related (e.g., catering)

How do I register as a subcontractor with the CIS?

You can access the online CIS login details via the HMRC page here. Simply follow the instructions online.

Make sure you have to hand your:

• National Insurance number
• Your VAT number if you are VAT registered
• Your HMRC UTR Unique Taxpayer Reference
• Your legal business name

Can I make deductions and claim a tax refund through the CIS?

Absolutely. Anything that you spend a part of your work can be deducted from your earnings. These include:

• Vehicle expenses such as fuel and repairs.
• Essential tools for carrying out your job – clothing, equipment, etc.
• Basic business expenses – accounting, marketing, phone, etc.
• Builders’ Liability Insurance.

You can claim for this through the official CIS webpage or, if you feel you need some help, you can use our CIS expertise, and we can complete the necessary filing on your behalf.

Can you help me to calculate my CIS tax rebate?

Yes. Our exclusive CIS tax return calculator will illustrate how much you might be due as a tax refund. You could be entitled to more than you think. To clarify exactly what you can claim, and how, contact us now for more information.