What is CIS?

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What is CIS?

[/vc_column_text][vc_column_text]CIS (Construction industry scheme) is a tax law relating to work done by subcontractors for contractors in the UK. It involves the contractor deducting CIS before paying each subcontractor invoice.

Work covered by the scheme is all construction and field trade work that is subcontracted. Included are contractors and subcontractors of any type – sole traders/self-employed or companies or partnerships. Any business whose main activity is not construction but spends more than £1m per annum on construction is deemed a contractor and construction/trade work for them as subcontracting e.g. work done for Housing Associations.[/vc_column_text][vc_row_inner][vc_column_inner width=”1/2″][vc_column_text]

Does it apply to you?


CIS does not apply to work done directly for and paid directly by home owners or businesses not engaged in construction. Other work not subject to CIS includes architecture, surveying, scaffolding hire when there is no labour involved, carpet fitting, delivering materials and running a canteen or similar facilities on a construction site.[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/2″][vc_single_image image=”39″ img_size=”large”][/vc_column_inner][/vc_row_inner][vc_column_text]Contractors are businesses that commission work from other businesses and subcontractors are businesses that do work for other businesses. Contractors and subcontractors, including sole traders, must register under CIS with HMRC and some may need to register as both. Employees of these companies do not need to register individually.

Avoiding CIS is only possible by criminal collusion between a contractor and a subcontractor. If CIS is not deducted when it should be and the subcontractor subsequently fails to pay their tax, the contractor will be liable for payment of the unpaid tax.[/vc_column_text][vc_column_text]

How do you manage CIS?


Trade Helper has teamed up with Powered Now Invoicing App for the trade business. CIS is confusing enough when you try to work it out yourself but thankfully the smart people at Powered Now have built an app and software that can work it all out for you.

Powered Now is built exclusively for the trade and every account also comes with free training and support, they are CIS experts so give them a call or email.[/vc_column_text][vc_single_image image=”54″ img_size=”large”][vc_column_text]

Further reading


Trade Helper has written a good overview including CIS examples, go and take a look, hopefully its useful.[/vc_column_text][/vc_column][vc_column width=”1/3″ css=”.vc_custom_1519728786455{margin-top: 50px !important;}”][vc_empty_space][vc_column_text]

So, what is CIS exactly?

The Construction Industry Scheme (or CIS for short) is pretty complicated. Whenever we speak to tradesmen and women there is normally a lot of head scratching and confusion. So we built this website with a simple goal, to help small businesses operating in the Trade Sector understand what CIS is. If you’re working as a contractor or sub-contractor and passing payments to HMRC under CIS.

We’ve written a good overview about CIS, hopefully, you will find it helpful.[/vc_column_text][vc_single_image image=”56″ img_size=”full” alignment=”center” onclick=”custom_link” link=”https://www.powerednow.com/features/construction-industry-scheme-support/#i” css=”.vc_custom_1521462096069{margin-bottom: 40px !important;}”][vc_single_image image=”57″ img_size=”full” alignment=”center” onclick=”custom_link” link=”http://www.powerednow.com” css=”.vc_custom_1521462103802{margin-bottom: 40px !important;}”][vc_single_image image=”58″ img_size=”full” alignment=”center” onclick=”custom_link” link=”http://www.powerednow.com” css=”.vc_custom_1521462112149{margin-bottom: 40px !important;}”][/vc_column][/vc_row]