The Construction Industry Scheme (CIS) is an HMRC scheme for subcontractors in construction. Contractors must deduct tax from subcontractors’ pay and submit it to HMRC.

  • Registered CIS Subcontractors: 20% deduction
  • Unregistered: 30% deduction
  • Gross Status: 0% deduction

Subcontractors still must file a self-assessment to reconcile tax.

No. CIS subcontractors are self-employed, meaning they do not receive:

  • Holiday pay
  • Sick pay
  • Pension contributions
  • Employee rights

If you want employment benefits, Umbrella Payroll may be more suitable.

Payroll runs can be scheduled to suit your business—weekly, fortnightly or monthly.

Payments are made via Faster Payments for same-day or next-day receipt.

Subcontractors may claim business expenses such as:

  • Tools & equipment
  • Travel between sites
  • Protective clothing
  • Phone and admin costs
  • Business insurance
  • Vehicle costs (or mileage)

We provide guidance and can introduce accountants to help maximise your tax efficiency.

We support contractors and subcontractors with HMRC correspondence to prevent disputes, penalties or compliance issues.