Construction Industry Scheme (CIS)

As a contractor, you must register for the CIS scheme with HMRC. Subcontractors do not have to register, but their tax will be deducted at a higher rate if they are not registered.

Register as a contractor if either:

  • you pay subcontractors for construction work
  • your business does not do construction work, but you spend an average of more than £1 million a year on construction in any 3-year period

Register as a subcontractor if you do construction work for a contractor.

Contractor’s responsibilities

Contractors are required to:

  • deduct the correct amount of tax from their payments to subcontractors,
  • file monthly returns with HMRC and
  • pay the required amounts over on time.

The monthly returns are due also in the month in which you do not pay any subcontractors – in this case, you must file a nil return.


Noncompliance with HMRC requirements will mean fines, starting from £100 for a failure to submit a return.

Our offer

To help you stay compliant with your obligations as a contractor, Be Payroll Limited service includes the following:

  • Verification of all your subcontractors and advice on their tax treatment.
  • Preparation and submission of your monthly CIS returns to HMRC.
  • Preparation and issuing of subcontractors’ tax vouchers.
  • Advising of liability and payments deadlines.

Contact us today for a non-obligatory quote for the CIS processing service.