Back
Let us sort your Self Assessment online. £119, all in. Learn more

Construction Industry Scheme (CIS)

The Construction Industry Scheme (CIS) is used by HMRC to collect income tax from subcontractors in the construction industry. 

You’re eligible to register for the scheme if you’re a self-employed construction worker. If you’re a full-time employee, the scheme does not apply to you. You can check with your company to confirm which bracket you fall under. 

In the past, self-employed construction workers (subcontractors) were paid in cash. The difficulties in keeping track of this led HMRC to create the Construction Industry Scheme in 1971, allowing them to tax subcontractors’ earnings as soon as they were paid out by their contractors.

Why register for CIS if you work as a subcontractor in construction?

If you’re registered for the scheme, you will have only 20% tax deducted from your salary, rather than 30% that is deducted for those who aren’t registered.

What is the CIS rebate?

The 20% deduction usually works out as more than you owe in tax, so subcontractors can claim back a CIS tax rebate from HMRC in the April of the following tax year. For most CIS construction workers, the average refund is about £2,500.

Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.

Have a minute? See how it works

More guides & useful information

Let us sort your Self Assessment online. £119, all in.

That’s right. No matter how complicated it gets or why you need to do a return in the first place, it’ll cost £119 to get it done. That includes VAT, last-minute changes and all the support you may need.

How it works

1. Answer a few simple questions

And we mean a few. After a couple of minutes of answering questions online we’ll have everything we need to start working on your tax return.

2. Then get paired with a tax accountant

That’s right, you’ll be matched with a real accountant who is best suited to prepare your return. Plus, they’re on hand for questions whenever you need.

3. We file your Self Assessment for you

Once you’ve signed off your return, your TaxScouts accountant will file your return online with HMRC. That’s it! We told you it was simple.