CIS Returns

What is the CIS?

Under the Construction Industry Scheme (CIS), contractors deduct money (20%) from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC). Contractors must register for the scheme. However, subcontractors don’t have to register, but deductions are taken from their payments at a higher rate (30%) if they’re not registered.

Construction Industry Scheme (CIS) covers all construction work carried out in the UK, including jobs such as:

  • Site Preparation
  • Alterations
  • Dismantling
  • Construction
  • Repairs
  • Decorating
  • Demolition

The UK includes UK territorial waters up to the 12-mile limit.
The scheme doesn’t apply to construction work carried on outside the UK. However, a business based outside the UK and carrying out construction work within the UK is within the scheme and must register accordingly.

The scheme covers all types of businesses and other concerns that work in the construction industry, including:

  • Companies
  • Partnerships
  • Self-employed Individuals

These businesses can be:

  • Contractors
  • Subcontractors
  • Contractors and Subcontractors

Under the scheme, the terms ‘contractor’ and ‘subcontractor’ have special meanings that cover more than is generally referred to as ‘construction’.

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