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 organizations 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.
Contractors, subcontractors and agents – How to get started with CIS
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 us, paying subcontractors and submitting monthly paperwork.
What subcontractors need to do under CIS
If you are a subcontractor, your main obligation is to register with HM Revenue & Customs as well as your main business name you can register up to one trading name.
You must also keep us informed of any changes to your business (including changes to the structure, address, business name, partners etc).
Getting paid and making payments 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 us informed of any changes to your business, to ensure that you are paid the correct amount.
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.
