Construction Industry Scheme

Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HMRC.

These deductions count as advance payments towards the subcontractor’s tax and National Insurance.

We can help with:

  • Registering you as a subcontractor
  • Assisting you in obtaining a Gross Payments Certificate
  • Dealing with disputes with HMRC arising from appealing penalties, through to determining if a person is, in fact, carrying out construction operation within the definition of the law

In general, a contractor must register for the scheme. Subcontractors do not have to register, but deductions are taken from their payments at a higher rate if they are not registered.

If you fail to pay the tax due on time or file the return late, HMRC will send you a late filing penalty notice.

You must either pay this within 30 days of receiving the notice, or, if you feel the penalty notice is incorrect, you can appeal.

If you need help with CIS deductions or feel that HMRC has miscalculated CIS tax and you intend to appeal, please seek expert help immediately