What is the Contruction Industry Scheme (CIS)?

In the Construction Industry Scheme (CIS), contractors deduct money from subcontractors‘ payments and pass it on to HM Revenue and Customs (HMRC). Subcontractor deductions count as advance payments towards the subcontractor’s taxes and NI.

Contractors must register for the scheme. Subcontractors are not required to register, but if they aren’t, deductions are taken from their payments at a higher rate.