What is CIS for contractors and sub-contractors?
The Construction Industry Scheme (CIS) is a kind of tax system which contractors in the construction industry use to report the pay details of any sub-contractors that they use. When a contractor uses a sub-contractor (rather than an employee), they deduct CIS tax each time they pay them, a bit like when an employer deducts tax from employees’ wages.
The contractor reports the details of what a sub-contractor was paid, and how much CIS tax they have deducted, using a CIS return. The contractor is also responsible for sending the CIS deduction to HMRC each month.
Read our straightforward guide to CIS which explains who needs to register for CIS and when, and what your obligations as a CIS contractor or subcontractor are.