60 Second Guide to the Construction Industry Scheme CIS

Money Money Money

CIS is all about money. It's to do with the payments in the construction industry made by contractors to subcontractors. CIS are rules about paying tax. HMRC make the CIS rules.

On the whole CIS generally concerns contractors and subcontractors in conventional construction work. However, there are businesses or organisations whose main work is not construction but nonetheless covered by CIS. This is where the business regularly spends a lot of money on construction.

HMRC require businesses to register with them if they are in the construction industry or do construction type work (even if their core business is not construction). When registering with HMRC you have to say whether you are a contractor or a subcontractor.

All Businesses

CIS applies to all businesses that operate in the construction industry here in the UK. This will include:

• Self-employed
• Sole traders
• Partnerships
• Companies
• Limited liability partnerships (LLPs)

As well as builders and other traditional construction businesses, the CIS scheme may also apply to businesses like:

• Labour agencies and staff bureau
• Gangmasters - or gang leaders
• Property developers

Further information can be found at the HMRC website.