If you’re a company, partnership or a self-employed individual working in the building or construction industry, you may have to pay tax under the Construction Industry Scheme (CIS).

This tax deduction scheme refers to payments made from contractors to subcontractors (not employees, as these are covered by PAYE). Contractors deduct money from a subcontractor’s payments and pass it on to HMRC.

What type of work is covered by CIS?

CIS covers most construction work to:

·        a permanent or temporary building or structure

·        civil engineering work like roads and bridges

For the purpose of CIS, construction work includes:

·        preparing the site – for example, laying foundations and providing access works

·        demolition and dismantling

·        building work

·        alterations, repairs and decorating

·        installing systems for heating, lighting, power, water and ventilation

·        cleaning the inside of buildings after construction work

Are there any exceptions?

You do not have to register if you only do certain jobs, including:

·        architecture and surveying

·        scaffolding hire (with no labour)

·        carpet fitting

·        making materials used in construction including plant and machinery

·        delivering materials

·        work on construction sites that’s clearly not construction – for example, running a canteen or site facilities