General overview of the Construction Industry 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.