{"id":3673,"date":"2022-04-01T09:37:22","date_gmt":"2022-04-01T08:37:22","guid":{"rendered":"https:\/\/cloud9accountingteam.co.uk\/?p=3673"},"modified":"2026-11-06T14:49:57","modified_gmt":"2026-11-06T14:49:57","slug":"construction-industry-scheme","status":"publish","type":"post","link":"https:\/\/cloud9accountingteam.co.uk\/sk\/construction-industry-scheme\/","title":{"rendered":"CIS Explained: A Guide for Contractors and Subcontractors"},"content":{"rendered":"<p><em>Last reviewed: November 2026<\/em><\/p>\n<p>Under the Construction Industry Scheme (CIS), contractors take money off subcontractors\u2019 payments and pass it to HMRC as an advance on the subcontractor\u2019s tax and National Insurance. It covers most building, civil engineering and property work.<\/p>\n<table>\n<thead>\n<tr>\n<th>Subcontractor status<\/th>\n<th>Deduction from labour<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Registered for CIS<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>Not registered<\/td>\n<td>30%<\/td>\n<\/tr>\n<tr>\n<td>Gross payment status<\/td>\n<td>0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Deductions apply to the labour part of an invoice, not to materials, VAT or plant hire.<\/p>\n<h3>Contractors must<\/h3>\n<ul>\n<li>Register before taking on the first subcontractor.<\/li>\n<li>Verify each subcontractor with HMRC before paying them.<\/li>\n<li>File a monthly return by the 19th of each month. If you make no payments in a month, tell HMRC you are inactive.<\/li>\n<li>Pay deductions to HMRC by the 22nd (electronic payment).<\/li>\n<li>Check whether a worker should really be an employee.<\/li>\n<\/ul>\n<p>Businesses outside construction also become contractors if they spend over \u00a33 million on construction in 12 months.<\/p>\n<h3>Subcontractors should<\/h3>\n<ul>\n<li>Register, to cut deductions from 30% to 20%.<\/li>\n<li>Keep every payment and deduction statement, as deductions reduce the tax you owe on your tax return and often lead to a refund.<\/li>\n<\/ul>\n<p>VAT-registered businesses in construction usually also use the VAT domestic reverse charge.<\/p>\n<p>We run CIS returns and payroll for trades and contractors. <a href=\"https:\/\/cloud9accountingteam.co.uk\/sk\/contact\/\">Ozvite sa n\u00e1m<\/a>.<\/p>\n<p><small>Sources: <a href=\"https:\/\/www.gov.uk\/what-is-the-construction-industry-scheme\" target=\"_blank\" rel=\"noopener\">GOV.UK \u2013 What is the Construction Industry Scheme<\/a>; <a href=\"https:\/\/www.gov.uk\/what-you-must-do-as-a-cis-contractor\" target=\"_blank\" rel=\"noopener\">GOV.UK \u2013 CIS contractors<\/a>.<\/small><\/p>","protected":false},"excerpt":{"rendered":"<p>Last reviewed: November 2026 Under the Construction Industry Scheme (CIS), contractors take money off subcontractors\u2019 payments and pass it to HMRC as an advance on the subcontractor\u2019s tax and National Insurance. It covers most building, civil engineering and property work. Subcontractor status Deduction from labour Registered for CIS 20% Not registered 30% Gross payment status [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":3674,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CIS Explained: A Guide for Contractors and Subcontractors - Cloud 9 Accounting Team<\/title>\n<meta name=\"description\" content=\"CIS explained for builders and tradespeople: 20% and 30% deduction rates, gross payment status, monthly returns and the traps to avoid.\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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