Construction Industry Scheme (CIS): Who Qualifies and What You Get
Learn how the Construction Industry Scheme works for contractors and subcontractors to help manage tax deductions at the source.
The Construction Industry Scheme (CIS) is a system used to collect tax from people working in the construction industry. It ensures that tax is deducted from payments made to subcontractors to help cover their eventual tax bills.
Who it's for
This scheme applies to both contractors and subcontractors working within the construction industry.
What you get
The main benefit is that tax is deducted at the source. This means a portion of your earnings is set aside to help cover your annual tax obligations.
What it costs you
To participate, you are required to register as a subcontractor. You must also manage the administrative task of keeping records of your earnings and deductions.
The catch to know
If you have not been properly verified, contractors might deduct a higher percentage of your pay than necessary. It is important to ensure your status is correctly registered to avoid losing more money than required.
How to apply
- Determine if you are acting as a contractor or a subcontractor.
- Register for the scheme through the official government portal.
- Keep detailed records of all payments and tax deductions.
- Check your status to ensure correct deduction rates are applied.