It is mandatory for all subcontractors working within the definition of CIS to register with the UK Inland Revenue. If the subcontracting company or person does not meet the eligibility criteria for a gross payment certificate, a subcontractors registration card, CIS4 is issued, that entitles them to net payments. The holder of a CIS5 or CIS6 is entitled to gross payment of the labor component of payments received. Overview LegislationĬIS legislation requires that any subcontracting company or person employed in the construction industry holds a construction gross payment certificate, CIS5, or a subcontractors gross payment certificate, CIS6. Note: The Construction Industry Tax (CIT) scheme preceded CIS and is no longer valid. The scheme applies to construction work carried out in the UK and also includes jobs such as installation, demolition, repairs, and decorating.
The UK Inland Revenue’s Construction Industry Scheme (CIS) governs the taxation of certain payments made by contractors to subcontractors from August 1, 1999. 16/59 Construction Industry Scheme Procedures Definition
