CIS payments, done correctly.
Construction Industry Scheme payroll for genuinely self-employed subcontractors and the agencies and contractors who engage them.
What CIS is
The Construction Industry Scheme is HMRC's system for paying self-employed subcontractors in construction. The contractor paying a subcontractor deducts money from the labour part of each payment and pays it to HMRC. Those deductions count as advance payments towards the subcontractor's own tax and National Insurance.
Who can be paid under CIS
CIS applies to construction work done by subcontractors who are genuinely self-employed. Not every construction worker is self-employed. If someone works under supervision, direction or control, or their working arrangements look like employment, they should be employed and paid through PAYE, for example through umbrella payroll.
We check employment status first. Before we pay anyone under CIS, we look at how the work will actually be done. If the arrangement points to employment, we will recommend a PAYE route instead.
Registration, verification and deduction rates
| Subcontractor's status | Deduction from labour |
|---|---|
| Registered for CIS | 20% |
| Not registered for CIS | 30% |
| Gross payment status | No deduction (0%) |
Before the first payment, the paying contractor verifies the subcontractor with HMRC, and HMRC confirms which rate applies. The deduction is worked out on the labour part of the payment only. Materials the subcontractor paid for, VAT and the CITB levy are not included.
Gross payment status lets a subcontractor be paid without deductions. To get it, the business must pass HMRC's business, turnover and compliance tests.
Deductions and statements
- The contractor files a monthly CIS return and pays the deductions to HMRC.
- Each subcontractor receives a payment and deduction statement showing the gross payment, materials and the amount deducted.
- The subcontractor then reclaims the deductions against their tax bill through Self Assessment, or receives a refund if too much was taken.
How it works with Kingsley Crest
- Status checkWe confirm the work and working arrangements fit CIS.
- VerificationWe verify you with HMRC so the right deduction rate applies.
- Weekly paymentWe apply the CIS deduction to the labour element and pay you, with materials paid without deduction.
- StatementsYou receive a monthly statement of your payments and deductions for your tax return.
Standard or Platinum
Choose the package that suits you. Platinum adds KC Rewards+ for £2.50 a week more.
Everything you need to be paid compliantly.
- Employment status check before you start
- HMRC verification and the correct CIS deduction
- Weekly payments, materials paid without deduction
- Monthly payment and deduction statements
- Support from our payroll team
- Fuel and supermarket savings
- 2,000+ retailer discounts
- Gym, cinema, dining and days-out offers
- 24/7 GP, video appointments and prescriptions
- 24/7 counselling, legal and money advice
- Free cash prize draw
Everything in Standard, plus everyday savings and wellbeing support for £2.50 a week more.
- Employment status check before you start
- HMRC verification and the correct CIS deduction
- Weekly payments, materials paid without deduction
- Monthly payment and deduction statements
- Support from our payroll team
- Fuel and supermarket savings
- 2,000+ retailer discounts
- Gym, cinema, dining and days-out offers
- 24/7 GP, video appointments and prescriptions
- 24/7 counselling, legal and money advice
- Free cash prize draw
Fees are charged only in weeks you work. Your agency may have a preferential rate with us. Benefits that carry their own extra cost, such as private dental cover, are not included.
Contractor and subcontractor responsibilities
The contractor
Verifies subcontractors, makes the correct deductions, files monthly returns, pays HMRC and issues statements.
The subcontractor
Registers for CIS, keeps records, declares income and deductions on their Self Assessment return and pays any balance.
Read HMRC's guidance on the Construction Industry Scheme.
Talk to a payroll specialist.
Tell us what you need and we will come back to you with a tailored proposal.