Guidelines When Applying for the CIS Scheme

CIS or the Construction Industry Scheme can save you money on your tax bill. If you are a subcontractor, you can register for the CIS scheme so instead of your contractor having to hand over 30% of your wages to HMRC, it is only 20%. It is important to note that this scheme is not for PAYE employees but rather the subcontractors who are registered as self-employed. 

At BNA Consulting we have years of experience with CIS so we have created a guide in applying for the scheme. It is a straightforward process but it can vary depending on your individual work situation.

Before you begin

To apply for the CIS scheme, you will need the following:

• Legal business name
• Your UTR number (Unique Taxpayer Reference)
• Your National Insurance Number
• VAT registration number if you are registered 

 The application process

The application process is simple and it can vary depending on your situation. It is important to note that if you are a contractor and subcontractor then you should register separately. Once you have registered you do not need to do anything else unless your circumstances change. 

Limited Company – You can register as a limited company you will just need your UTR and business name.  

Self-employed contractor – You should begin by registering as self-employed and then you can use your UTR number to register. 

Based abroad – If you are based outside the UK but will be working in the UK then you can still join the scheme. The application process can be different for this depending on your business.  But it is important to know that this scheme is not just for British companies if the work is being done in the UK.

There is plenty of advice available online and you can contact HMRC if you come across any issues during the application process. 

Is my work eligible?

Most jobs in construction are covered by the scheme and these include builders, joiners, plumbers, and more. You will find that the scheme is mandatory for most. The general list includes:

• Any building works
• Laying foundations
• Cleaning buildings after construction
• Demolition
• Repairs
• Decoration
• Installing heat, light, power, ventilation, and water

What work is not covered?

There are certain jobs in the industry that where the CIS scheme does not apply and you do not have to register. These include:

• Fitting of carpets
• Material delivery
• Surveying
• Architecture
• Scaffolding hire – If not doing any labor
• Manufacturing materials for construction

Does a CIS tax return need to be handed in every year?

Yes, you need to complete a tax return at the end of every tax year. The deadline is January 31st and if you miss this date then may have to pay a fine. 

CIS Scheme and BNA Consulting

We have years of experience with the scheme and we can help with filing monthly returns and submitting the annual one. CIS doesn’t have to be stressful you can receive advice and guidance along the way. Contact our friendly team today to see how we can help you with CIS.