A person hired by a contractor to work on smaller jobs that form a larger project, usually seen in the construction industry. These subcontractors are usually self-employed:
Contractors will pay your wages and deduct the tax required.
A CIS contractor is one who’s part of the construction industry scheme, ensuring construction workers are taxed fairly. Being part of the scheme means that you’ll only have 20% of your pay deducted compared to 30%. You’ll claim a rebate at the end of the year for any overpayment. Unless you’re a higher rate taxpayer, you won’t owe more than 20% tax.
If you don’t want deductions, you can register for “gross payment status” so you’ll be paid in full without any tax deductions. You are then required to do your own self assessment.
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