What is CIS?
Businesses operating in the construction industry are known as contractors and subcontractors and they may be companies, partnerships or self-employed individuals.
Contractors pay subcontractors for construction operations and subcontractors are those businesses that carry out building work for contractors.
Before they can get paid under the Scheme, subcontractors must hold either a Registration Card or a Subcontractors Tax Certificate.
To get a Subcontractors Tax Certificate or Registration Card a subcontractor must first be registered with the Inland Revenue.
Subcontractors who meet certain qualifying conditions will be issued by the Inland Revenue with Subcontractors Tax Certificates. Those who do not will be issued with Registration Cards.
Where a subcontractor holds a Registration Card, the contractor must make a deduction from all payments for labor of an amount on account of the subcontractor's tax and National Insurance contribution (NIC) liability. Where the subcontractor holds a Subcontractors Tax Certificate, the contractor will pay him or her gross, that is, with no amounts taken off.


