CIS: Construction Industry Scheme

We have a full CIS Returns service for Contractors and Sub-contractors.

Please Contact Us if you would like us to register you for CIS and prepare your Self Assessment

Introduction to the UK Construction Industry Scheme.

The Construction Industry Scheme is a UK tax system which applies to contractors and sub-contractors in the construction industry.

In certain circumstances, when payments are made by contractors to subcontractors, the contractor must deduct and withhold some tax. This deducted tax is then paid over to HMRC by the contractor, and is regarded as tax paid by the sub-contractor.

CIS is therefore similar to PAYE for employers / employees.

When the sub-contractors make their Self Assessment tax returns at the year end, they can count this deducted tax as already paid. This may result in either a balance of tax to be paid, or a refund.

CIS Registration

We can register you for CIS, please Contact Us if you require this service.

These are 2 ways to register for CIS yourself:

• Telephone the CIS Helpline 0300 200 3210

• Send off form CIS 301

Contractor's Monthly CIS Return

A CIS Contractor must complete an Online Monthly CIS Return to HMRC, which lists the tax deducted from Sub-Contractors. If none in a particular month, then a 'nil return' is still required. The total CIS deducted must then be paid over to HMRC each month.

CIS Tax suffered by a Self-Employed Sub-Contractor

CIS tax which has been deducted by a Contractor when paying a self-employed sub-contractor is taken into account when the sub-contractor is filing the Self Assessment Tax Return.

CIS Tax suffered by a Limited Company Sub-Contractor

CIS tax which has been deducted by a Contractor when paying a limited company sub-contractor can be set off against the company's Corporation Tax bill or reclaimed - please refer to the link below.
GOV.UK Guides:
Construction Industry Scheme: repayment claims for limited company subcontractors
Repayment claims for limited company subcontractors - Helpcard

HMRC Links

Here are some links to the HMRC website:

  CIS Guide

  What is the Construction Industry Scheme?

  Deciding whether your work comes within CIS

  Are you a contractor or subcontractor under CIS?

  Subcontractor registration and obligations