How does CIS work?

If you are a sub-contractor in the construction industry you may be able to join the Construction Industry Scheme – but what is CIS, and how does it work?

CIS was set up by the government in 1999 and means that registered contractors pay tax at source.

You don’t have to register for CIS if you work in the construction industry, but it may mean you may have to pay more tax. CIS registered sub-contractors pay 20% tax on their income while unregistered workers pay 30%.

Are you eligible?

To benefit from CIS, you will need to meet HMRC’s eligibility criteria which covers the type of work you undertake and the level of supervision, direction and control your role entails, among other things. We offer a free Contractor Assessment to help determine whether CIS is a suitable solution for you, and to ensure compliance with HMRC’s rules. This gives you peace of mind at the outset.

Paying tax

As a member of the CIS scheme, you’re still entitled to your tax-free personal allowance, just like a regular worker.

Tax is deducted directly from your payment and NI contributions are made at the end of the tax year. We also retain an income as the contracting company, otherwise known as our margin. All this is made clear to you in a detailed pay illustration before you join Workwell.

At the end of the year, you will need to submit a self-assessment tax return detailing expenses you wish to claim and any additional sources of income you may have. There may be no further action to take; you more have more tax to pay or you may be due a rebate. We can help you to complete your self-assessment tax return if required.

Switching contracts

Our CIS service is designed to work around your needs. Whenever you wish to switch to a new project, you simply get in touch with our expert team and we will sort out all the paperwork, usually in a matter of minutes.

Here to help

Our service is designed to ensure you receive accurate payment without delay, in full compliance with the CIS rules. Our team is available to you at all times to answer any further questions you may have.