What is CIS and Do I Need to Register?
Introduction
If you’re working in construction, whether you’re a sole trader, in a partnership, or a limited company, you probably fall under the Construction Industry Scheme (CIS). HMRC expects you to register before you start working for contractor clients What you must do as a Construction Industry Scheme (CIS) subcontractor: How to register – GOV.UK Ignore it, and you could face fines or higher deductions.
Who Must Register?
You must register as a CIS subcontractor if you work for a contractor.
If you also pay subcontractors, you’re a contractor, and must register in that capacity too.
How to Register
Quickest route: sign up online.
You’ll need:
- Legal/trading name and UTR
- VAT number (if applicable)
- Date you started trading
Once registered, HMRC sets you as net payment status, meaning your clients deduct 20% from payments and pay that to HMRC
If online registration isn’t possible, you can register by post.
Why It Matters
- Prevents unauthorised deductions or delays.
- Fines for non-registration or wrong deductions can be heavy.
- Sets you up as a gross payment subcontractor (if eligible), letting you receive full payment without automatic deductions.
✅ Quick Steps to Register:
- Gather: UTR, VAT number, trading name, date you started.
- Register online via GOV.UK.
- Verify with HMRC and secure confirmation.
- Consider applying for gross payment status.
Why You’ll Thank Yourself
Staying compliant means no nasty surprises—just steady pay, clean records, and full control over your business finances. Want us to check your CIS status or handle registration? Contact me today.