Construction Industry Scheme

What is the Construction Industry Scheme?

The Construction Industry Scheme (CIS) is a set of special rules for handling payments for construction work that contractors make to subcontractors. The scheme covers all ‘construction operations’ – construction work – carried out in the UK, as well as some other related work.

Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractor’s tax and National Insurance. Contractors must register for the scheme. Construction workers under this scheme can claim a tax refund for expenses.

We can help guide and advise end clients, recruiters and workers within construction operations and have a full range of services to suit all needs.

CIS LIMITED COMPANY

If you are operating a Limited Company registered under the CIS Scheme, we offer a range of services, including sector-specific tax and accounting advice and access to specialist independent legal and financial advice to sub-contractors . We can assist with registration and compliance with statutory responsibilities as a Director.

CIS SOLE-TRADER

We can assist self-employed sole traders with CIS registration as well as processing gross payments and ensuring the correct deductions are made at source based on your status. We conduct robust and reliable Supervision, Direction and Control (SDC) assessments for each project to give confidence that all income is subject to the correct tax regime. We can also assist with SATR completion.

CIS UMBRELLA

For all individuals working within CIS projects, we offer a simple and effective PAYE payroll solution, where agencies and end clients require a third party to be registered for CIS, but the worker does not have an authorised SDC assessment for their assignment, or the agency/end client do not wish to work with sole-traders as part of their supply chain.

When does CIS apply?

Work falling under the CIS key term “construction operations” includes most UK work to a structure, building, installation or civil engineering work, be that permanent or temporary nature.  This includes; groundwork, construction, alteration, repair, extension, demolition and dismantling. When the project is still in construction phase, common actives such as cleaning the interior, fencing and landscaping are also covered by the Construction Industry Scheme.

CIS applies to all contractors and subcontractors, whether sole-traders, partnerships, or companies, working within the mainstream construction industry. “Contractor” and “Sub-Contractor” each have specific meanings in the context of CIS. “Contractors” can include those not considered construction-related entities, such as property developers.  Local authorities and housing associations, who spend £1 million or more p.a. on construction over a three-year period are also included.