CIS for subcontractors and how a good CIS accountant can help

Your main contractor is required to deduct income tax from your payments, and pay these over to HMRC on your behalf.

Do I have to register for CIS as a subcontractor?

No, only main contractors are obliged to register for CIS. However, if you don’t register for CIS as a subcontractor, your contractor will be obliged to deduct 30% rather than 20% of your fees.

I get a payslip, should I still need register for CIS?

Normally no, unless you do some self-employed work in construction too.

What do I need to register for CIS as a subcontractor?

You will need your UTR (Unique Tax Reference), and a government gateway login and ID. If you haven’t already registered as self-employed you can do this in one go.

I’m having CIS deducted when I don’t think I should

There are some elements of construction that should not be subject to CIS deductions – including carpet fitters, architecture, surveying, and scaffolding hire (but not any labour on this). If this appears to be the case, then you should contact your main contractor to discuss.

Do I still need to do a tax return if CIS has been deducted?

Yes, you are self-employed and should be doing a tax return. The amount deducted by your main contractor is deducted from the amount of tax due, and you either pay (or are refunded) any difference.

How can a good CIS accountant help?

An accountant experienced in CIS can register you for CIS, and make sure that the correct rate of deductions is applied to your invoices. Confused about domestic reverse charge VAT? If you are VAT registered and invoicing a main contractor, you should normally be including VAT at the reverse charge rate – please see our separate posting on this

Builders working for main contractors will have tax deducted at source under the CIS scheme

About the author

Dr Roger Clough, founder

Roger has a PhD in UK food retail change, has lectured extensively in business finance and accounting, and has run several businesses over three decades. As an AAT Licensed Accountant he likes to be on a journey with clients rather than the kind of accountant who just prepares the statutory accounts after the year end – meaning that advice can be given and decisions can be made before it is too late.

About Clough Accounting

t           01736 601657

e          roger@cornwall-accountants.co.uk

w         www.cornwall-accountants.co.uk

Roger Clough t/a Clough Accounting is an AAT Licensed Accountant

© Clough Accounting, 2024