Construction Industry Scheme (CIS)

The UK Construction Industry Scheme (CIS) is a government-administered system that sets out guidelines and rules for tax and National Insurance contributions when contractors pay subcontractors for construction work.

It applies to businesses operating in the construction industry. Under this scheme, contractors must register with HMRC and keep records of payments made to subcontractors. Subcontractors can optionally register under CIS to receive money from the contractor using preferred terms.

The goal of CIS is to ensure that everyone is paying their taxes appropriately, as well as ensuring fairness within the industry by ensuring payments are made on time.

CIS registered subcontractors can gain access to CIS mortgage schemes.

These CIS mortgages are calculated differently, allowing them to apply for a mortgage based on the gross paid income, rather than a net self assessment figure.

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