You must register with the Construction Industry Scheme (CIS) if you or your business uses subcontractors for construction work.

How to register as a contractor

You must first register as an organisation on the Government Gateway. You'll need your National Insurance number and an email address.

You must then register as an organisation for HMRC online services. You’ll need the unique taxpayer reference number (UTR) for your business and a National Insurance number.

Contractors based abroad that do construction work in the UK must follow a different CIS registration process.

Help with registering

New Employer Helpline
0300 200 3211 Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
Find out about call charges

CIS Helpline
0300 200 3210
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
Find out about call charges

Rules you must follow

If you’re a CIS contractor you must:

• check with HMRC that your subcontractors are registered under CIS
• make the right CIS deductions to payments you make to your subcontractors
• pay CIS deductions to HMRC
• file monthly returns with HMRC
• keep full CIS records
• let HMRC know about any changes to your status

You will usually need to make Construction Industry Scheme (CIS) deductions from payments you make to subcontractors. You must ‘verify’ subcontractors so that HM Revenue and Customs (HMRC) can tell you the correct rate of CIS deduction.

Verify your subcontractors

You need to verify subcontractors if you haven’t included them on a CIS return in the current or past 2 tax years.

When you verify your subcontractors, HMRC will tell you whether or not the subcontractor is registered under CIS. They will also tell you what rate of CIS deduction to use or if you can pay them without making deductions.

You can verify subcontractors with:

• the HMRC CIS online service
• commercial CIS software

You can also call the CIS helpline.

CIS helpline
Telephone: 0300 200 3210
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
Find out about call charges

To verify your subcontractors, you’ll need:

• the name of your business or organisation
• your Unique Taxpayer Reference (UTR)
• the reference number for your HMRC accounts office
• your HMRC employer reference

You will also need your subcontractors’:

• name or business name
• UTR
• National Insurance number if they’re a sole trader
• company registration number if they’re a limited company

Verifying large numbers of subcontractors

You can verify subcontractors and file CIS data using the Electronic Data Interchange (EDI) system.

This allows you to transfer large amounts of information quickly and easily (you don’t have to have a certain number of subcontractors to use this system).

There’s more information about this on the HMRC website.

CIS deductions and payments to subcontractors

HMRC will tell you the correct rate of CIS deduction when you verify the subcontractor. The rates are:

• 20% CIS deductions for registered subcontractors
• 30% CIS deductions for unregistered subcontractors
• no deduction in some cases, ie pay the gross amount

You only need to make CIS deductions from payments to subcontractors - not salaried employees.

You can pay your subcontractors directly or through a third party if they ask you to.

You must check your subcontractors' employment status before paying them for the first time.

You must give subcontractors a payment and deduction statement if you make CIS deductions from their payments.

Download sample payment and deduction statement (PDF, 27KB)

You must pay HM Revenue and Customs (HMRC) any Construction Industry Scheme (CIS) deductions you make from payments to your CIS subcontractors.

The standard CIS deduction rate is 20%, but there is also a higher rate of 30%. HMRC will tell you what rate to use when you verify your subcontractors.

Payments to HMRC should be made every month - no later than the 19th day of the month - or quarterly for smaller amounts (less than £1,500).

If you pay electronically, payment is due by the 22nd of each month. Interest will be due on late payments, and a late payment penalty could also be charged.

There are instructions on paying CIS deductions to HMRC on the HMRC website.

You must tell HM Revenue and Customs (HMRC) about all the payments you have made to subcontractors under the Construction Industry Scheme (CIS) each month.

You can file your returns by using:

• the HMRC CIS online service
• commercial CIS software
• the paper CIS monthly return CIS 300 - call the CIS helpline to get a form

CIS helpline
Telephone: 0300 200 3210
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
Find out about call charges

You must still file a return for the months when you made no payments to subcontractors. This is called a 'nil return'.

Deadlines

Send your monthly returns to HMRC by the 19th day of the month.

Penalties for late returns

You will get a penalty if you miss the deadline for filing returns - even if you’re only a day late.

Penalties range from £100 to £3,000, or 100% of the CIS deductions shown on the return - whichever is higher. The penalty amount depends on:

• how late your return is
• the amount of deductions on the late return

There's more information about penalties for late returns on the HMRC website.

Correcting or amending returns

You might need to contact HMRC if you make a mistake.

You can also change something in your return if you need to. Call the CIS helpline to correct a mistake or change something.

CIS helpline
Telephone: 0300 200 3210
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
Find out about call charges

You can also write to HMRC at the address below.

HMRC
Custom House
Carnbane Way
Carnbane Industrial Estate
Newry
BT35 6QG

Filing returns with large numbers of subcontractors

You can file CIS data using the Electronic Data Interchange (EDI) system.

This allows you to transfer large amounts of information quickly and easily (you don’t have to have a certain number of subcontractors to use this system).

There’s more information about this on the HMRC website.

Under the Construction Industry Scheme (CIS), you must keep records of:

• the gross amount of each payment made to each subcontractor (excluding VAT)
• the subcontractors’ Unique Taxpayer reference (UTR) and National Insurance number
• any verification details HMRC made including the payment status and verification number
• the amount of any deduction you made from a payment before you gave it to the subcontractor
• the amount of any materials costs, excluding VAT (if you made a CIS deduction)

You must keep these details for at least 3 years after the end of the tax year they relate to.

HM Revenue and Customs (HMRC) could ask to see your CIS records at any time.

You could be fined up to £3,000 if you can't show your CIS records when asked by HMRC.

As an individual or business under the Construction Industry Scheme (CIS), you must tell HM Revenue and Customs (HMRC) if you:

• change address
• temporarily stop using subcontractors (because you’re only using your own employees to carry out work)
• change your business structure
• stop trading, or if a contractor dies

You must also tell HMRC within 90 days if you're a multiple contractor and you take on all or part of another contractor's business.

Call the CIS helpline to report changes.

CIS helpline
Telephone: 0300 200 3210
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
Find out about call charges