Two men standing on a scaffold with the sun shining through

What it Means to be a CIS Subcontractor

SLBC Ltd are a Construction Industry Scheme (CIS) Subcontractor (CIS Subcontractor) and limited company. This means that we are subcontracted by principal contractors in the construction industry to carryout brickwork for large developments across the country. As SLBC Ltd carries out construction work for many different contractors, this is why we are considered to be a CIS subcontractor.

Some of the larger contractors that we have tendered and worked for include Stewart Milne Homes, Robertson Homes Limited, Keepmoat Homes, and Bellway Homes. You can read some of our client testimonials from some of these companies here. CIS Contractors that we work for apply the CIS rate of tax to any payments made to us as the CIS subcontractor and pays this directly to HMRC, which is then counted towards our National Insurance and Tax.

What is the purpose of CIS?

The Construction Industry Scheme was established to thwart unaccounted payments to subcontractors whilst keeping clear and up-to-date records of earnings for tax purposes. So, in simple terms, it keeps us right! As the scheme is not voluntary, there are penalties for failing to enrol or submit payments on time, this ensures that the contractors that we provide labour for are fulfilling their responsibilities under the CIS scheme.

How to Register for CIS

Businesses or individuals can register for CIS by heading to the Construction Industry Scheme government website. It depends on whether you are registering as a contractor or subcontractor in terms of which way you will register. For all the official information on how and when to register, you can head to the Government website. All contractors and subcontractors absolutely MUST register with HMRC for CIS.

Subcontractors may also apply to be paid gross, with no deductions being taken from their payments. However, in order to apply for this, there are are certain qualifying conditions set out by HMRC that the subcontractor would need to meet. When a subcontractor applies to be gross, they would pay tax in a lump sum at the end of the year. You can read more detailed information about that here.

All image credit to Canva.