Single Payment
Deduction Statement

CIS Single Payment Deduction Statement Screenshot

Price: €3


Multi Payment
Deduction Statement

CIS payment and deduction statement screenshot

Price: €3


CIS Articles:

  2. CIS – Contractor’s Duties
  3. CIS – Contractor – How to file CIS return online
  4. CIS – Subcontractor’s Duties
  5. CIS – Templates


Updated on 12 June 2016 by Accountant


Used abbreviations
CIS Construction Industry Scheme
UK and NI United Kingdom and Northern Ireland
HMRC HM Revenue & Customs – Tax office in the UK and NI


What is CIS?

Construction Industry Scheme (CIS) is a tax deduction system, which applies in the construction industry.

The CIS scheme has similar logic as PAYE system where Employer deduct tax from Employee’s gross salary and pay him only net pay. In CIS system we have “Contractor” (who represents Employer in PAYE system) who deduct tax from payments to “Subcontractor” (who represents Employee in PAYE system).

Employer is responsible to deduct tax from payments to employees and similarly contractor is responsible for correct tax deduction from payments to subcontractors.

Who is Contractor?

A Contractor is a self-employed person or a company who pays subcontractor for construction work.

Private householders are not counted as contractors, so they are exempt from CIS scheme.

Who is Subcontractor?

Subcontractor is a self-employed person or a company who carries out construction work for a contractor (client).

Contractor and Subcontractor at the same time

Many businesses can be contractors and subcontractors at the same time. Many businesses pay other businesses for construction work, but are themselves paid by other businesses too. When they are working as a contractor, they must follow the rules for contractors and when they are working as a subcontractor, they must follow the rules for subcontractors.

What is construction work?

CIS scheme covers all construction work carried out to a permanent or temporary building/structure in the UK and NI, including works as follows:

  • a civil engineering work or installation,
  • site preparation,
  • alterations,
  • dismantling,
  • construction,
  • repairs,
  • decorating,
  • demolition.

What is not a construction work?

Some activities as below on construction sites are not construction work:

  • the running of a canteen,
  • the running of a hostel,
  • provision of medical or safety services,
  • provision of security services,
  • provision of site facilities.



HM Revenue & Customs, CIS
HMRC CIS Guide in PDF, last updated in 2015