CIS FAQs

Q) What is CIS (Construction Industry Scheme)?
A) CIS is a tax scheme which only applies in the construction industry. Contractors and sub-contractors must be registered with HMRC.
Q) Do I need to register for CIS?
A) There are clear guidelines from HMRC whether you need to register for CIS. The scheme is for workers on a self-employed basis.
Types of work which is covered by CIS
• Site preparation
• Alterations
• Dismantling
• Construction
• Repairs
• Decorating
• Demolition
• Installing systems for heating, lighting, power, water and ventilation
• Cleaning the inside of buildings after construction work

Exceptions
You are not required to register for CIS if you only do the following jobs
• Architecture and surveying
• Scaffolding hire (no labour)
• Carpet fitting
• Delivering materials
• Making materials used in construction including plant and machinery
• Work on construction sites which are not clearly construction e.g., running a canteen or site facilities
If you are still unsure whether you are required to register for the scheme and require further information from HMRC. We would advise you to contact the CIS helpline.
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/construction-industry-scheme

Q) How do I register for CIS?
Limited Companies
We will Register you for CIS and you will need to provide the following details:
• your legal business name – you can also give a trading name if it’s different to your business name
• your national insurance
• the unique taxpayer reference number (UTR) for your business
• your VAT registration number (if you’re VAT registered)
If you’re a subcontractor and a contractor (you pay subcontractors to do construction work), then you will need to register for CIS as both.
Sole Trader
We will Register you for CIS and you will need to provide the following details:
• your personal unique taxpayer reference number (UTR)
• if you do not have a personal UTR then we will register you for self-assessment and CIS
Q) Am I due a rebate?
Sole trader
Every individual can earn up to £12,500. When contractors deduct CIS, they don’t consider your personal allowance. Therefore, often a rebate is due if you would like to find out whether you are due give us a call. You can claim a CIS tax refund for the last four years.
Limited companies
We will review the position of the company to see if a CIS claim can be made. CIS claims for limited companies are more complex than sole traders. Your payroll and corporation tax return are considered. We will handle all payroll and corporation tax returns for you and work out your CIS. You can claim a CIS tax refund for the last four years.

Q) How much CIS get deducted?
When a contractor pays you under CIS they will normally make deductions at the standard rate of 20%
However, they may make deducted at a higher rate of 30% if one of following occurs
• You are not registered for CIS
• They cannot verify you
• You give the wrong name for your business