Construction Industry Scheme (CIS)

Carter Bond offers expert CIS accounting support for self-employed sole traders in the construction industry. We ensure compliance with HMRC regulations, manage tax deductions, and simplify Self-Assessment Tax Returns. We provide straightforward advice and fast, flexible services, helping you avoid penalties and stay compliant.

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CIS For the Sole Trader.

We help self-employed sole traders register for CIS, manage gross payments, and ensure correct tax deductions at source.

To keep everything compliant, we conduct thorough Supervision, Direction, and Control (SDC) assessments for each assignment, so you can be confident that your income is taxed correctly. We also offer support in completing your Self-Assessment Tax Return (SATR).

FAQs

  • The Construction Industry Scheme (CIS) is an HMRC initiative designed to prevent tax evasion in the construction sector. With a high number of mobile, self-employed workers, a specific system was needed to ensure tax compliance.

    CIS applies to payments made by contractors to subcontractors under a construction contract but does not apply to employees. Non-compliance can lead to significant fines and penalties.


  • CIS covers most construction-related activities in the UK, including work on buildings, structures, civil engineering projects, and installations—whether permanent or temporary. This includes groundwork, construction, alteration, repair, extension, demolition, and dismantling. Even tasks like interior cleaning, fencing, and landscaping during the construction phase fall under CIS, though they don’t apply once the project is completed.

    Read more about when CIS applies here.

  • Not all construction-related projects fall under CIS. Some key exclusions include:

    • Shipbuilding – While it involves many construction skills, ships are classified as vehicles and are not covered by CIS.

    • Certain Installations –

      • Covered by CIS: Heating and air-conditioning systems in a new building.

      • Not Covered by CIS: IT or security systems installed as part of a fit-out process.

    • Professional Services – The work of architects, quantity surveyors, and consultants in building, engineering, decoration, or landscaping is excluded—unless they are directly involved in managing or executing construction work.

    • Support Services – Activities that support construction but are not construction work itself, such as:

      • Operating a canteen, hostel, or medical and safety services on-site.

      • Providing security services.

      • Delivering road-making or building materials.

  • HMRC enforces strict penalties for non-compliance with the Construction Industry Scheme (CIS). Contractors must:

    Maintain accurate records of payments, deductions, and subcontractor verification.
    Submit CIS returns on time to avoid fines.
    Pay CIS tax deductions promptly to HMRC.

    To find out more about CIS non-compliance penalties, get in touch or read our blog here.


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