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CIS-registered companies are different
The Construction Industry Scheme (CIS) is a tax deduction scheme in the United Kingdom that applies to payments made by contractors to subcontractors in the construction industry. It was introduced to combat tax evasion within the construction sector.
Under CIS, contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC). The deducted amount counts as advance payments towards the subcontractor’s tax and National Insurance contributions.
The scheme applies to construction work including :
- Building
- Alterations
- Repairs
- Demolition
As well as associated activities like:
- Scaffolding
- Painting
- Decorating
However, it doesn’t typically apply to work done by architects, surveyors, or engineers, unless they are also engaged in construction operations.
