When are You a Subcontractor under CIS

Types & Variations

CIS uses its own special definition of the term subcontractor. So even if you don't normally think of yourself as a subcontractor, you could be treated as one under CIS.

Under the rules of CIS, you're a subcontractor if you agree to do construction work for a contractor. It doesn't matter how you actually carry out the work - you could do it yourself, get your employees to do it, use your own subcontractors or make some other arrangement.

Subcontractors can be self-employed individuals, any type of business, or other bodies and organisations. Some examples of construction industry subcontractors include:

• Sole traders, partnerships and companies that do construction work for contractors
• Labour agencies and staff bureaux that use their own workers to do construction work for a contractor - or that supply (but not just introduce) workers to a contractor
• Gang leaders who contract to do work for a contractor and are paid for the work done by their gang
• Foreign businesses paid to do construction work in the UK, or in UK territorial waters
• Local authorities and public bodies that do construction work for someone else