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.



Checking whether the Construction Industry Scheme applies to you

You can check whether the Construction Industry Scheme (CIS) applies to your business and whether you count as a contractor, subcontractor (or both) under the scheme by reading our guidance below.

Deciding whether your work comes within CIS

Are you a contractor or subcontractor within CIS?


Getting started with CIS – contractors, subcontractors, tax and managing agents

What contractors need to do under Construction Industry Scheme (CIS)

As a contractor you have certain obligations under the CIS, including registering with the scheme, checking whether your subcontractors are registered with HM Revenue & Customs (HMRC), paying subcontractors and submitting monthly returns.

Contractor registration and obligations under CIS

What subcontractors need to do under CIS

If you are a subcontractor, you need to register with 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).

Subcontractor registration and obligations

Using or dealing with subcontractor trading names

Acting as a tax 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 (Pay As You Earn)/CIS for Agents service.

Find out what what you need to do if you act as a CIS agent.

Managing agents and CIS

If you are a managing agent acting on behalf of a client – find out what you and your client’s responsibilities are under CIS

Read about managing agents role under CIS


CIS for larger businesses, public bodies and non-UK businesses

Construction Industry Scheme (CIS) for larger businesses

If you’re a larger contractor business you can choose to operate as a ‘multiple contractor’ under the CIS. A multiple contractor is a contractor that has divided their business up into several sections, known as divisions, specifically for CIS purposes.

Multiple contractor status for larger businesses under CIS

CIS where construction isn’t your main activity

Even if construction isn’t your main activity, you’ll need to register with HM Revenue & Customs (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 local authorities.

CIS where construction isn’t your main activity

Public bodies and organisations under CIS

CIS for businesses based outside the UK

You may still need to register with CIS even if your business is based overseas.

How CIS applies to businesses based outside of the UK


Making payments and getting paid under CIS

If you are a contractor under the Construction Industry Scheme (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 HM Revenue & Customs (HMRC) and keep them informed of any changes to your business, to ensure that you are paid the correct amount.

Verifying and paying subcontractors

Getting paid and paying tax – advice for subcontractors


Contractor monthly returns and record keeping under CIS

As a contractor under the Construction Industry Scheme (CIS) you will need to make monthly returns each month. Doing this online is quick and easy. If you make any mistakes HM Revenue & Customs (HMRC) can help you sort them out.

Monthly returns and record keeping for contractors

Understanding and using CIS online

Correcting monthly return and payment errors

Late returns and late return penalties under CIS


Business changes you need to report under CIS

Whether you work as a contractor or subcontractor under the Construction Industry Scheme (CIS) it’s important to let HM Revenue & Customs (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).

Reporting changes to a subcontractor business 

Reporting changes to a contractor business


Getting more help with the Construction Industry Scheme

Every business is different. If you have any questions about whether your business is affected by the Construction Industry Scheme (CIS) you can call the HM Revenue & Customs CIS Helpline.

Every effort has been made by the author(s) to ensure this article’s accuracy but it does not constitute legal advice tailored to your circumstances. If you act on it, you acknowledge that you do so at your own risk. We cannot assume responsibility and do not accept liability for any damage or loss which may arise as a result of your reliance upon it.