Efficient CIS registration for contractors and subcontractors. Start quickly with ACG.

Registration for CIS (Construction Industry Scheme) – Clear, Compliant and Supportive

If you work in construction—whether you’re hiring or being hired—registering with CIS (the Construction Industry Scheme) is essential. At Audit Consulting Group, we guide contractors and subcontractors across the UK through the register for CIS scheme process, keeping things professional but simple.

What Is CIS and Why Does Registration Matter?

The Construction Industry Scheme (CIS) is a system set up by HMRC to manage tax within the construction sector. It requires contractors to deduct tax at source from payments made to subcontractors. These deductions are sent straight to HMRC as advance tax and National Insurance.

• If you’re subcontractor-CIS registered, contractors deduct 20%.
• If you’re not registered, they deduct 30%.
• Contractors themselves must register for CIS if they employ subcontractors or spend more than £3 million on construction in a year.

Many subcontractors prefer to register for CIS tax, to keep 10% more cash in hand each payment — and later adjust on their personal tax return.

Who Needs to Register for the CIS Scheme?

There are two categories:

• Contractors: anyone paying subcontractors for construction work, or spending over £3 million on construction in 12 months, even if construction isn’t your primary business.
• Subcontractors: working in the construction industry under a contract — you can choose to register. If you do, you’re known as “CIS registered” and benefit from a lower deduction rate (20%).

You may also act as both — for example, managing a team but also doing subcontracted work — in which case you need to register as both contractor and subcontractor.

What Does “CIS Registered” Mean?

When you are CIS registered, HMRC recognises you as either:

• A CIS subcontractor: eligible for deductions at just 20%, or possibly gross payment status (no deductions) if you meet criteria.
• A CIS contractor: authorised to make deductions and submit CIS monthly returns.

In both cases, being correctly registered avoids higher deductions (30%) and HMRC penalties. It also signals professionalism to clients and contractors alike.

How to Register for CIS — Step by Step

Subcontractor Registration

1. Log in to your Government Gateway account.
2. Select ‘Construction Industry Scheme – Subcontractors’.
3. Complete the details:
   • UTR (Unique Taxpayer Reference)
   • NI number
   • Business/trading name
   • Start date of construction work
   • Type of work performed.
4. Submit online or use CIS301 if applying by post.
5. Once approved, your UTR acts as your CIS registration number.

You can also apply for gross payment status during this step if you qualify.

Contractor Registration

1. Ensure you’re registered as an employer within PAYE.
2. Use your Government Gateway account to register for CIS as a contractor under the ‘Employer’ menu.
3. HMRC sends you a letter with your PAYE reference and confirmation of CIS contractor status.

Once registered, you’re required to verify subcontractors, make correct deductions, submit CIS monthly returns, and issue payment statements.

What You’ll Need to Register

• UTR number
• National Insurance number (or company registration number if a business)
• Trading name (if different from business name)
• VAT number, if applicable
• Business start date and role (contractor or subcontractor)
• Contact details and Government Gateway login

Common Mistakes to Avoid 🚨

Many businesses face penalties due to:

• Failing to register early before starting work
• Misidentifying yourself as contractor or subcontractor (or both)
• Using the wrong rates (30% deduction instead of 20%)
• Forgetting to submit monthly CIS returns
• Not keeping proper records — a requirement for three years
• We help you avoid these issues by handling registration, set-up, and ongoing compliance properly.

What Happens After You Register?

As a Subcontractor:

• Contractors verify your CIS status online before first payment.
• You receive monthly deduction statements—essential for filing your tax return.
• If needed, apply for gross payment status later.

As a Contractor:

• Deduct 20 or 30% as appropriate from subcontractor payments.
• Submit CIS returns to HMRC by the 22nd of the following tax month.
• Provide payment and deduction statements to each subcontractor within 14 days

Real-Life Scenario Highlights

Case Study 1 – Self‑Employed Drone Operator (Subcontractor)

Worked on a site without registering. Contractor deducted 30% from £5,000 invoiced. Client switched to another subcontractor who was CIS registered, deducting just 20%. We registered him quickly and reclaimed the extra deduction via his tax return — saving £500 in one job.

Case Study 2 – Small Builder Turned Contractor

Direct contractor spending close to £4 million in construction projects. We registered them for CIS and PAYE, verified all subcontractors using HMRC’s online service, and implemented a system to submit monthly CIS returns. They now avoid late penalties and track deductions accurately.

Why Choose Audit Consulting Group?

✔ Friendly UK-based support and clear explanations
✔ Full CIS registration for contractors and subcontractors
✔ Verification, deductions, returns submission and payment statements
✔ Training or setup in Xero / QuickBooks CIS workflows
✔ Fixed pricing, no surprises
✔ Year-round compliance support — not just registration

Frequently Asked Questions (FAQ)

Is subcontractor CIS registration compulsory?
No—but highly recommended. Without registration, deduction rate jumps to 30%, impacting your take-home pay.

What does CIS registered mean for me?
You’re recognised by HMRC, taxed at a lower deduction rate, and contractors can pay you correctly.

Can I register as both contractor and subcontractor?
Yes. Many businesses need to register in both roles depending on project engagements.

How long does registration take?
Usually around 10 working days online, possibly longer by post.

What happens if I don’t register?
Subcontractors lose out on 10% per payment; contractors risk penalties and interest from HMRC.

Can I deregister from CIS?
Yes. If you stop doing construction work or paying subcontractors, our team can help you remove CIS status.

Ready to get CIS compliant without headaches? Whether you need to register for CIS scheme, understand CIS registered meaning, or handle register for CIS tax, Audit Consulting Group is here to make it straightforward.

📞 Contact us for a free consultation
💬 Or submit your details for us to register you quickly

Audit Consulting Group – UK’s friendly experts in CIS registration and compliance

Book your free consultation today and let us get your CIS registration sorted—fast, affordable, and stress-free.