Joining the Construction Industry Scheme (CIS)

 Is CIS the right option for you?

If you work in the construction industry as a contractor, you may wish to consider joining the Construction Industry Scheme (CIS). The scheme is designed to make tax simpler, but understanding how it works, why it matters, and how to register is crucial for ensuring you get paid correctly and remain compliant with HMRC regulations.

What is the Construction Industry Scheme?

The CIS is a system introduced by HMRC to manage tax deductions for workers in the construction industry. Under CIS, tax is deducted from your pay and passed on directly to HMRC, so it’s less paperwork for you. Additionally, you’ll pay less tax. Registered workers will pay tax at a rate of 20% whilst non-registered workers will pay 30% tax.

It’s a scheme that’s open to all types of construction workers, including:

• Bricklayers and masons
• Carpenters and joiners
• Electricians and plumbers
• Painters and decorators
• General labourers and site workers

Exceptions include workers involved architecture and surveying, scaffolding hire (with no labour), carpet fitting, making or delivering materials used in construction or work on construction sites that’s not connected to construction such as running a canteen or site facilities.

Why Registering for CIS Matters

Registering for CIS is essential. You’ll firstly have to register as self-employed. Once you’ve done that, you can login to your Government Gateway account to register for CIS.

Once registered, we can process your pay accurately and on time. Each time we process your pay, we will deduct the correct tax from your payment and send it to HMRC, so you don’t need to worry about compliance.

At the end of the tax year, you’ll need to complete a self-assessment tax return, where you can claim a tax rebate on any allowable expenses you’ve incurred, such as equipment you need to do your job. It’s important to understand what you can and cannot claim for, and to complete the SATR correctly on time. Our expert team can help you do this.

If you’re not eligible for CIS because you don’t meet the self-employed criteria, don’t worry. You can opt to join our Umbrella company which acts as your employer and processes your pay whilst enabling you to have the freedom and flexibility to switch between contracts.

Here to Help

As the UK’s largest FCSA-registered CIS payments provider, we support thousands of CIS workers to get paid properly and on time, without any compliance headaches. If you’re thinking of joining CIS, we can answer any questions you may have regarding registration, tax and payments. Get in touch on 01923 257257 to speak to a member of our expert team.