Construction Industry Scheme (CIS)

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.

Work covered by CIS

CIS covers most construction work to:

• a permanent or temporary building or structure
• civil engineering work like roads and bridges

For the purpose of CIS, construction work includes:

• preparing the site - for example, laying foundations and providing access works
• demolition and dismantling
• building work
• alterations, repairs and decorating
• installing systems for heating, lighting, power, water and ventilation
• cleaning the inside of buildings after construction work

Exceptions

You do not have to register if you only do certain jobs, including:

• architecture and surveying
• scaffolding hire (with no labour)
• carpet fitting
• making materials used in construction including plant and machinery
• delivering materials
• work on construction sites that’s clearly not construction - for example, running a canteen or site facilities

The CIS guide for contractors and subcontractors has more detail on what is and is not covered by the scheme.