CIS – the basics

Are you currently working in the construction industry? If so, it may be worth looking into the Construction Industry Scheme (CIS).

CIS is a government run scheme where contractors deduct money from a subcontractor’s pay and pass it to HMRC as an advance payment towards the subcontractor’s tax and National Insurance Contributions.

Depending on certain criteria, you’ll pay either 20% or 30% tax. So, what do you need to do to register for the Construction Industry Scheme?

• CIS applies only to work carried out in the UK. If you work outside of the UK, you cannot register for the scheme.
• You will need to check the services you provide fall under CIS. The Government website has a list of jobs covered by CIS and those that are exempt. To find out more, visit https://www.gov.uk/what-is-the-construction-industry-scheme
• To register for CIS, you will need a Unique Tax Reference number (UTR). A UTR number is 10 digits long as is unique to you. It is used by your payment provider to check your details with HMRC and determine your tax treatment. You can apply for a UTR number if you do not already have one by registering for self-assessment on the government website.
• You will be asked if you are subject to SDC – supervision, direction, or control. This helps determine whether you are classed as self-employed. You must be self employed to be eligible for CIS. If you are subject to SDC, you are told what to do by someone else, how to do your work, where to do it or when and can’t be classed as self-employed.

A CIS payroll specialists, Apex can help you to become a CIS registered worker.