Do you need to worry about CIS?
If you are a self-employed tradesperson - plumber, electrician, builder, decorator, or any other construction worker - and you sometimes pay someone to help you on a job, this quick check is for you.
Answer the questions below to find out if the Construction Industry Scheme (CIS) applies to you.
Quick check: 3 questions
Question 1: Are you paying someone who is NOT your employee?
| YES - They are self-employed, or you are just paying them for this job | Go to Question 2 |
| NO - They are your employee on your payroll | CIS does not apply. Use PAYE instead. |
Question 2: Is the work construction-related?
Construction includes: building, repairs, extensions, decorating, demolition, plumbing, electrics, heating, tiling, plastering, roofing, groundwork.
| YES - The work is construction-related | Go to Question 3 |
| NO - It is not construction work | CIS does not apply. |
Question 3: Are you paying them money for their work?
| YES - You are paying them cash, bank transfer, or any payment | CIS applies. You are a CIS contractor. |
| NO - They are working for free, or you are only buying them materials | CIS does not apply (but consider if this is truly unpaid work). |
CIS applies - what must you do?
If CIS applies to you, here are the 5 things you must do:
Your CIS checklist
- Register as a CIS contractor - Do this once, before your first payment. Free, takes 10 minutes online.
- Verify the worker with HMRC - Before you pay them. You need their name, UTR, and National Insurance number.
- Deduct tax from their payment - Usually 20% (or 30% if unregistered). Deduct from labour only, not materials.
- File a monthly return - By the 19th of the following month, even if you did not pay anyone that month.
- Pay the deductions to HMRC - By the 22nd of the following month.
What happens if you ignore CIS?
If HMRC finds out you should have been operating CIS but were not:
- You pay the tax - The tax you should have deducted comes out of your pocket, not theirs
- Penalties add up - Starting at 100 pounds for late filing, increasing every month
- Interest accrues - On any tax you should have paid
It is not worth the risk. Register now, even if you only use help occasionally.
Need more detail?
This quick check gives you the essentials. For worked examples, common scenarios (plumber using a labourer, paying a mate, subcontracting work), and step-by-step instructions, read the full guide.
Using occasional labour on construction jobs - your CIS obligations
Detailed scenario-based guide with worked examples, FAQs, and step-by-step instructions for sole traders who sometimes hire help.
Register as a CIS contractor (opens in a new tab)
Free registration takes about 10 minutes. Do this once and you are ready whenever you need to pay someone.
Use the CIS online service (opens in a new tab)
HMRC's online service to verify workers, file returns, and manage your CIS account.