CIS

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.

Who counts as a contractor or subcontractor


Register as a contractor if either:

  • you pay subcontractors for construction work
  • your business doesn’t 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.

You must register as both if you fall under both categories.

Work covered by CIS

CIS covers most construction work to buildings, including site preparation, decorating and refurbishment.

Exceptions 

You don’t have to register if you only do certain jobs, including: 

  • architecture and surveying
  • scaffolding hire (with no labour)
  • carpet fitting
  • delivering materials
  • work on construction sites that is clearly not construction, eg running a canteen or site facilities

 

HMRC's CIS guide for contractors and subcontractors explains what is and isn’t covered by the scheme, the guide can be found here

BrightPay for Windows 2016/17 caters for CIS payments, it is available for Standard & Bureau users

For previous years we had our companion product CIS Assistant, further information can be found here

 

 

Need help? Support is available at 0345 9390019 or support@brightpay.co.uk.

Important Information for Mac UsersBureau Enhancements - Additional Functionality Bureau Licence Holders (Only)Installing BrightPayOrdering for The New Tax YearImporting From The Previous Tax YearMoving to BrightPay from another payroll softwareEmployer DetailsEmployee DetailsCoding NoticesProcessing PayrollImporting Pay Data using CSV FilePayroll CalendarPayslip TranslationsMaking Corrections to PayrollPre-paying an EmployeeScheduling Future PaymentsSwitching an Employee's Pay FrequencyRTICommon HMRC Error MessagesHMRC PaymentsAnalysisGender Pay Gap ReportingPayroll JournalsStartersLeaversStudent Loan DeductionsPostgraduate Loan DeductionsStatutory PaymentsPensions (outside of Automatic Enrolment)Attachment of EarningsExpenses & BenefitsPayroll GivingDirectorsEmployee CalendarEmployer CalendarHolidaysRates & Thresholds at a GlanceTaxScottish Rate of Income TaxWelsh Rate of Income TaxNational InsuranceEmployment AllowanceApprenticeship LevyNational Minimum/Living WageOff-Payroll Working in the Public SectorMileage Allowance Payments (MAPs)Year EndBacking Up/Restoring Your PayrollBrightPay Licence Terms and ConditionsConstruction Industry Scheme (CIS)Automatic EnrolmentBrightPay ConnectGDPRRTI