An Introduction to the Construction Industry Scheme
- Price: £3.60
- Published: June 2015
- Type: Business Information Factsheet
- Format: PDF
The Construction Industry Scheme (CIS) sets rules for contractors and subcontractors in the construction industry concerning the deduction and payment of Income Tax and National Insurance contributions (NICs).
The CIS applies to most construction work carried out in the UK, including preparation of a site, dismantling, demolition and construction, repairs and decorating. Certain types of work are excluded from the scheme, such as professional work carried out by architects and surveyors, scaffolding hire, carpet fitting, the delivery of materials and non-construction work on a site, such as running a canteen.
This factsheet provides an overview of the CIS and explains who the scheme applies to, how it works, the procedures involved in registering, making payments and reporting under the scheme and the steps contractors and subcontractors need to take (and avoid) to ensure compliance. It also briefly explains the penalties and tax implications arising from failure to comply with the rules and provides hints and tips and sources of further information.