Bishopsgate Recruitment Services
Bishopsgate Construction Services
What is The Construction Industry Scheme (CIS)?
The Construction Industry Scheme (CIS) is a tax regime that HMRC set up to cater for self-employment in the construction industry.
Tax is deducted at either a higher (30%), net (20%) or gross level depending on the status of the subcontractor’s UTR number.
CIS tax deduction rates are as follows:
‘Net’ deduction (20%)
Higher deduction (30%)
Gross payment (0%)
When completing your tax return, you will be able to offset any business-related expenses incurred throughout the year against your income for tax purposes. Any overpaid tax will be reimbursed to you by HMRC.
How CIS Works For Subcontractors
HMRC state that the scheme covers all construction work carried out in the UK, this includes roles involved with:
- Site preparation
For more information on what is covered, please go to gov.uk