Construction Industry Scheme (CIS)
Maximise Your Income as a Self-Employed Subcontractor in the Construction Industry
Welcome to Consruction Group
What is the Construction Industry Scheme (CIS)?
Contractors working within the construction industry must register with the government-run Construction Industry Scheme (CIS).
The scheme requires contractors to deduct money from subcontract payments, which are passed on to HM Revenue and Customs (HMRC). Subcontractors not registered on the government’s CIS scheme will have deductions taken at a higher rate.
Once contractors are registered on the government scheme, Roveen BC takes care of the rest, making all necessary tax deductions accrued under the CIS scheme and paying them on your behalf to HMRC.
Not everyone who works in the construction industry is self-employed. If you work in the construction industry, you should consider your employment status the same way as everyone else.
It is important to be clear that even though Roveen will pay you and issue you a pay statement, you are not an Roveen employee and will not be entitled to any associated employment rights.
Do all workers in the construction industry automatically pay tax under the CIS?
No – you should only pay tax under the CIS if you are self-employed.
Contractors must decide if their workers are employed or self-employed.
Whilst most contractors would no doubt prefer to take on workers on a self-employed basis (as this means less cost/responsibilities/paperwork etc.), self-employment is a question, not a choice.
Even if the work arrangement is only for a short time, an existing Unique Taxpayer Reference (UTR), or they provide their small tools; an employee is more likely than a self-employed person if they exclusively work for one contractor.
If you are considered an employee of the contractor, income tax and National Insurance contributions (NI contributions) will be withheld at the source through the Pay As You Earn scheme.
How do I know whether to register under the Construction Industry Scheme?
There are two components of the Construction Industry Scheme (CIS), one being a ‘contractor’ and one being a ‘subcontractor’.
If you are engaging other self-employed workers doing construction work, you are a contractor and must register under the CIS.
As a low-income self-employed worker, it is more likely that you will be engaged or taken on by a contractor to perform some construction work. This will mean you are a subcontractor. If you are a subcontractor, you can choose to register under the CIS.
According to Gov.UK, you can register for the CIS as a subcontractor and obtain the required information. Different procedures are available if you have already registered as self-employed and work for yourself as a sole trader or through a different trading entity such as a partnership or a limited company.
In addition to registering as self-employed for Self-Assessment, registering under the CIS is required. This means that there are two separate registrations for those new to self-employment and the CIS. However, you can do both at the same time.
It is also possible to be both a contractor and subcontractor simultaneously. An example of a CIS is that if Ryan, an electrician, is contracted by a local builder to do some work, his work would be subject to the CIS. If he subcontracted some elements of his work to his electrician friend Jenny because he wanted to get the job done quicker, he must also register as a contractor and pay Jenny under the CIS.
If you decide not to register under the CIS, then the contractor must deduct and withhold 30% of the amount of your invoices for your work.
What We Offer
Our Services
CIS Registration Assistance
Get Started with CIS Registration
We make it easy for subcontractors and contractors to register under the Construction Industry Scheme (CIS). Whether you’re a new self-employed worker in the construction industry or a business owner looking to hire subcontractors, we’ll guide you through the process and ensure you’re compliant.
CIS Tax Deduction Management
Efficient CIS Tax Handling
Let Roveen BC manage your CIS tax deductions on your behalf. As a registered contractor or subcontractor, we ensure the correct tax rates are applied to your payments and that deductions are passed on to HMRC, so you can focus on the job at hand.
Subcontractor Registration Support
Subcontractor CIS Registration
If you’re a subcontractor, registering under the CIS allows you to reduce the tax deduction rate from 30% to the standard rate, which can help save you money. We assist with registration and ensure you’re getting the best tax treatment for your work.
Contractor Registration Support
CIS Contractor Registration
If you’re a contractor hiring subcontractors for construction work, you must be registered under the CIS. We provide comprehensive registration services to ensure you’re compliant with the rules and regulations, so you can focus on managing your projects.
Self-Employment & CIS Compliance Advice
Are You Self-Employed or Employed?
Not sure about your status? We offer tailored advice to help you determine whether you’re classified as self-employed or an employee, which has significant implications for your tax responsibilities. We’ll ensure you understand whether or not you’re subject to CIS.
CIS Payroll & Documentation Services
Simplify Your Payroll with CIS Management
Ensure your CIS payroll processes are smooth and error-free. We handle the paperwork, deductions, and compliance for you, so you’re always up to date with HMRC.
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