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Construction Industry Scheme (CIS)

[kənˈstrʌkʃᵊn ˈɪndəstri skiːm (siː-aɪ-ɛs)]



The Construction Industry Scheme (CIS) is run by HMRC for construction subcontractors to prevent tax evasion and keep members up-to-date with tax contributions.

More detail:

The Construction Industry Scheme (CIS) is a government scheme run by HMRC to help construction Subcontractors keep on-top of their Income Tax and National Insurance contributions. The scheme does not apply to full-time Employees. Members of the scheme will receive a CIS Card that they can use as a form of identification.

The CIS applies to most construction work. Members of CIS will have 20% of their salary deducted and that money will be used towards their tax obligations. Usually, this leads to overpayment so Subcontractors can file to claim a CIS rebate, and have the money they are owed refunded.

Workers can apply for 'gross payment status' if they do not want deductions to be made in advance by Contractors.

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