What is The CIS Scheme? 

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. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they’re not registered. 

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, eg 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