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Construction Industry Scheme · Updated September 2026

CIS registration: how to register as a subcontractor

The short answer

Register online with HMRC using your UTR, or, if you're new, register for Self Assessment as “working as a subcontractor”, which signs you up for CIS at the same time. Registered subcontractors have 20% deducted; unregistered, 30%. With gross payment status, nothing is deducted.

Step by step

How to register for CIS

  1. 1Get a UTR. If you don't have a Unique Taxpayer Reference, register as a new business for Self Assessment and choose 'working as a subcontractor'. This registers you for CIS too.
  2. 2Gather your details. Legal business name (and trading name), UTR, VAT number if you have one, the date you started trading, and your National Insurance number or company registration number.
  3. 3Register online. Sign in to HMRC's CIS service. This registers you for 'net payment status', meaning 20% deductions.
  4. 4Tell your contractors. Give them your name, UTR and National Insurance or company number so they can verify you with HMRC before paying you.

Official guidance: GOV.UK – what you must do as a CIS subcontractor.

Rates

CIS deduction rates

Your statusDeducted from labour
Registered (net payment status)20%
Not registered30%
Gross payment status0%

Deductions are taken from the labour part of the invoice, after VAT, materials and plant hire. Work yours out with the CIS calculator.

Get paid in full

Gross payment status

With gross payment status, contractors pay you in full and you pay your tax at the end of the year. To qualify you must show HMRC that:

  • You've paid your tax and National Insurance on time in the past.
  • Your business does construction work (or provides labour for it) in the UK.
  • Your business is run through a bank account.
  • Your turnover for the last 12 months, excluding VAT and materials, is at least £30,000 as a sole trader, or £30,000 per partner or director (or £100,000 for the whole partnership or company).

HMRC reviews gross payment status every year and can withdraw it if you file or pay late; you then have to wait a year to reapply. See GOV.UK.

Getting money back

Claiming back CIS deductions

Sole traders and partners: enter your total pay before deductions as income and your total CIS deductions on your Self Assessment return. HMRC takes the deductions off your bill and refunds any overpayment. Estimate yours with the self-employed tax calculator.

Limited companies: send an Employer Payment Summary (EPS) with your payroll showing CIS deductions for the year to date, and HMRC takes them off the PAYE and National Insurance you owe. Don't use the Corporation Tax return for this.

Contractors

If you pay subcontractors

  • Register as a contractor before you take on your first subcontractor.
  • Check whether the person should be an employee instead.
  • Verify each subcontractor with HMRC to find out the rate to deduct.
  • Deduct CIS, pay it to HMRC and give each subcontractor a payment and deduction statement.
  • File a monthly CIS return.

Businesses whose main work isn't construction only need to register once they spend more than £3 million on construction in 12 months.

Next steps

Setting up as a tradesperson

CIS registration FAQs

If you're a self-employed subcontractor (sole trader, partner or limited company) working for a contractor on construction work, you should register. If you don't, contractors must deduct 30% from your payments instead of 20%. Employees don't register. Contractors who pay subcontractors must register as contractors.

The quickest way is online with HMRC, using your business's Unique Taxpayer Reference (UTR). If you don't have a UTR yet, register as a new business for Self Assessment and choose 'working as a subcontractor': that registers you for Self Assessment and CIS at the same time.

Your legal business name (and trading name if different), your UTR, your VAT number if you're VAT registered, and the date you started trading. You may also need your National Insurance number, company registration number or partners' details.

Registered subcontractors have 20% deducted from the labour part of their payments; unregistered subcontractors have 30% deducted. Both are advance payments towards your tax, but the higher rate takes more cash out of each payment until you claim it back.

Apply to HMRC and show you've paid tax on time, do construction work in the UK and run the business through a bank account. Your turnover for the last 12 months, excluding VAT and materials, must be at least £30,000 as a sole trader, or £30,000 per partner or director (or £100,000 for the whole business). HMRC reviews it every year.

Online registration with an existing UTR is usually quick. If you first need to register for Self Assessment to get a UTR, HMRC posts it to you, which can take a couple of weeks, so register before you start work for a contractor.

Sole traders and partners enter their CIS deductions on their Self Assessment tax return and HMRC refunds any overpayment. Limited companies set CIS deductions against their PAYE bill each month through an Employer Payment Summary (EPS), not the Corporation Tax return.

General information based on HMRC guidance (September 2026), not tax advice.