The Construction Industry Scheme ("CIS") is a tax regime which applies to subcontractors working within the UK construction industry.
Through CIS, contractors make deductions from subcontractors' payments and pay these to HMRC. These deductions contribute to a subcontractor's income tax and national insurance obligations.
Contractors will verify the status of a subcontractor and make the necessary deductions from their payment depending on their verification status and pass it to HM Revenue and Customs (HMRC).
Subcontractors will either be not registered with HMRC (taxed at a higher rate of 30%) or registered under deduction (taxed at the standard rate of 20%).
Once you begin trading as a sole trader, you will need to register as self-employed online with HMRC. Once done, HMRC will provide you a Unique Tax Reference (UTR) number.
If you have already registered with HMRC as self-employed, you can find your UTR number on any letter or statements from HMRC
To register on the CIS, you will need to call the CIS office on 0300 200 3210 . Ensure you have your Unique Taxpayer Reference (UTR) number when you call, which you can obtain from calling the same number.
You will also need to register your UTR number with the CIS office to ensure you do not suffer a higher (30%) rate of deduction. You can also register for CIS online by clicking the button below.
After doing those two steps, you will be fully registered on the standard rate deduction of 20%.
