All contractors must register for the Construction Industry Scheme.
Subcontractors are not obliged to register, but if they choose not to, they will have 30% deducted from their earnings by contractors and remitted to HMRC. Employees in the construction industry are not included in CIS.
Registering for CIS is relatively easy and a matter of form-filling.
HMRC runs a dedicated helpline on 0300 200 3210
There’s online guidance here: www.gov.uk/topic/business-tax/construction-industry-scheme
Contractors must register with CIS before they hire any subbies. You will require:
Registration is voluntary and entitles you to pay the lower rate of tax deduction – 20% rather than the 30% for those who do not register under CIS. Specific information required includes: