Situations When CIS Does Not Apply

Not CIS

Certain types of work that are linked to the construction industry aren't covered by CIS. For example, work done by businesses like architects and surveyors isn't covered. Fitting flooring like laminate and vinyl is covered by CIS, but carpet fitting isn't.

There are some situations when a business or organisation that would normally be a mainstream or deemed contractor may not have to apply the CIS rules for contractors. For example, certain businesses that would otherwise be deemed contractors don't need to apply the CIS scheme when they pay for construction work on property used for the purposes of their own business.

Property Types

The types of property covered by this exemption include offices, warehouses and nursing homes, as well as other facilities used by the business. The normal CIS rules for contractors also don't apply when:

• A deemed contractor pays for a small construction contract of less than £1,000 - excluding materials costs - and has authorisation from HMRC to exempt it
• A contractor pays a subcontractor less than £1,000 - excluding materials costs - to do construction work on the subcontractor's own property - or on any agricultural property where the subcontractor is the tenant - and has authorisation from HMRC to exempt it
• The governing body or headteacher of a local education authority maintained school pays for construction work on behalf of the local education authority
• A charitable body or trust - but not its trading subsidiary - pays for construction work

Private householders are never treated as CIS contractors, no matter how much they spend on construction operations.