The Construction Industry Scheme (CIS) is an essential component of working compliantly in the UK construction sector. Whether you’re a contractor or subcontractor, understanding and registering for the Construction Industry Scheme can have significant implications on your cash flow, tax obligations, and business reputation.
At BNA Consulting, we specialise in making the CIS registration process seamless and stress-free. If you’re involved in construction and haven’t registered yet, this guide is for you.
What Is the Construction Industry Scheme?
The Construction Industry Scheme (CIS) is an HMRC initiative that applies to contractors and subcontractors working in the UK construction industry. Under this scheme, contractors must deduct money from a subcontractor’s payments and pass it to HMRC. These deductions count as advance payments towards the subcontractor’s tax and National Insurance.
It’s a legal obligation, and failing to comply can lead to significant penalties.
Why Register for the Construction Industry Scheme?
If you’re a subcontractor, you are not legally required to register for the Construction Industry Scheme, but doing so brings major benefits:
- Reduced Deductions: Registered subcontractors have just 20% deducted from their payments compared to 30% for unregistered ones.
- Improved Cash Flow: Lower deductions mean more money in your pocket each month.
- Enhanced Credibility: Many contractors prefer to work with registered subcontractors to reduce their compliance risks.
- Avoid Penalties: Non-compliance can result in financial penalties and interest charges from HMRC.
For contractors, CIS registration is a requirement, not an option. It ensures your business remains on the right side of HMRC, helping you avoid penalties and build trust with subcontractors and clients alike.
Who Needs to Register?
You should register for the Construction Industry Scheme if:
- You pay subcontractors for construction work (contractor).
- You do construction work for a contractor (subcontractor).
- You are both a contractor and subcontractor (common in the industry).
Whether you’re a sole trader, a partnership, or a limited company, CIS applies if you’re involved in construction activities such as building, decorating, demolition, site preparation, or repairs.
How to Register for the Construction Industry Scheme
Registering involves more than just filling out a form. You’ll need:
- A UTR (Unique Taxpayer Reference) number
- Details of your business structure
- Your National Insurance number (if you’re a sole trader)
- Your VAT registration number (if applicable)
- HMRC login credentials for Government Gateway
Contractors must also verify their subcontractors with HMRC and keep detailed CIS records and monthly returns.
It’s no surprise that many construction professionals find the process overwhelming or time-consuming — that’s where BNA Consulting can help.
Why Choose BNA Consulting?
At BNA Consulting, we offer comprehensive support to help you register for the Construction Industry Scheme efficiently and correctly. Here’s how we support our clients:
✅ Full Registration Service – We manage the entire CIS registration process on your behalf.
✅ HMRC Liaison – We handle all communication with HMRC so you can focus on running your business.
✅ Compliance Check – We ensure your business is fully compliant with CIS rules, helping you avoid penalties.
✅ Ongoing Support – We don’t stop at registration. We help manage your CIS returns, verify subcontractors, and maintain proper records.
✅ Tailored Advice – Whether you’re a new startup or a growing construction firm, we tailor our services to fit your needs.
Avoid Costly Mistakes
Getting it wrong can lead to delays in payment, hefty fines, and unwanted scrutiny from HMRC. With BNA Consulting at your side, you can register quickly and confidently – with full peace of mind.
Ready to Register for the Construction Industry Scheme?
If you’re ready to register for the Construction Industry Scheme, don’t go it alone. Let the experts at BNA Consulting simplify the process and help your business stay fully compliant from day one.
👉 Contact us today to get started – and join hundreds of UK construction professionals who trust BNA Consulting for their CIS and bookkeeping needs.
BNA Consulting – Bookkeeping & Accounting Made Easy for the Construction Industry
Visit: https://bnaconsulting.co.uk
Email: [email protected]
Phone: +44 208 991 991 0