Do I Need CIS Registration? Here’s the No BS Guide for Builders & Trades

If you’re a builder, subcontractor, or running a construction company in the UK, someone’s probably thrown the term “CIS” at you and left you to Google the rest. So, let’s cut through the confusion and answer the question once and for all: Do you need to register for CIS?

Short answer:

If you’re working in construction as a contractor or subcontractor – yep, you probably do.

But let’s break it down properly…

What Even Is CIS?

CIS stands for Construction Industry Scheme. It’s HMRC’s way of making sure tax is paid upfront in the construction world – because let’s be real, a lot of it used to slide under the radar.

If you’re a subcontractor, the contractor you work for deducts money from your invoice (usually 20%) and sends it straight to HMRC. If you’re not registered, they take 30% instead – ouch.

If you’re a contractor, you’re responsible for doing that to your subs.

So, Do You Need to Register?

Here’s the deal:

You need to register for CIS if…

• You’re a subcontractor doing construction work for another business.

• You’re a contractor who pays subcontractors for construction work.

• You’re a business that spends more than £3 million on construction in any 12-month period – even if construction isn’t your main trade.

You don’t need to register if…

• You’re doing work outside the scope of CIS – like architecture, surveying, or cleaning after construction is done.

• You’re doing construction work for a private homeowner (not a business).

• You’re an employee on PAYE – CIS is for self-employed workers and companies.

What Counts as ‘Construction Work’?

HMRC’s definition covers:

• Site prep

• Demolition

• Building work

• Alterations

• Repairs

• Decorating

• Installing systems (electrics, plumbing, heating)

If you’re doing any of the above and getting paid as a business, CIS applies.

Why You Should Register (Even If You Hate Paperwork)

• You’ll get tax deducted at 20% instead of 30%

• You can claim CIS tax back at the end of the year or offset it monthly if you’re a limited company

• It makes you look legit to bigger contractors

• You avoid fines and letters from HMRC that ruin your week

What Happens If You Don’t Register?

• You get paid less (30% taken instead of 20%)

• HMRC might get on your back

• You could struggle to get hired by contractors who only use registered subs

Let’s be honest – it’s not worth dodging.

Need Help Getting Registered or Claiming CIS Back?

That’s literally what we do.

We’re accountants who speak builder – no fluff, no jargon. We’ll get you sorted so you can keep more of what you earn and stop guessing whether HMRC’s about to knock.

Book a free call or drop us a message – let’s sort it once and for all.