How to Check Your CIS Status

At Towerstone Accountants we provide specialist CIS accountancy services for contractors and construction businesses across the UK. We created this webpage for subcontractors and contractors who want clear guidance on the Construction Industry Scheme, including registration, deductions, refunds, and ongoing reporting obligations. Our aim is to help you stay compliant with HMRC, avoid costly errors, and understand how CIS affects your tax position.

When people come to me asking about CIS it is rarely because they are curious, it is usually because something feels wrong, a payment has arrived short, a contractor is asking awkward questions, or HMRC has sent a letter that does not quite make sense. Over the years I have dealt with CIS from every angle, sole traders starting out, limited companies scaling up, contractors trying to stay compliant, and subcontractors trying to understand why so much tax is being taken before they have even seen the money.

In this article I am going to explain how to check your CIS status properly, not just where to click on GOV.UK but what the status actually means, how HMRC records it, how contractors see it, and what to do if something is wrong. My aim is to give you clarity and confidence, because once you understand your CIS position the scheme becomes far less intimidating and far more manageable.

What CIS status actually means

Before you check your CIS status it helps to understand what HMRC means by status, because many people assume it is simply registered or not registered. In reality there are three distinct positions and each one has very different consequences.

Under the Construction Industry Scheme a subcontractor can be

• Not registered for CIS

• Registered for CIS at the standard rate

• Registered for CIS with gross payment status

If you are not registered for CIS and you carry out construction work for a contractor then the contractor must deduct tax at 30 percent from your labour payments. I see this catch people out regularly, especially those who have recently registered as self employed and assume CIS registration happens automatically. It does not.

If you are registered for CIS but do not have gross payment status then the contractor deducts tax at 20 percent from the labour element of your invoice. This is the most common position and applies to the majority of subcontractors across the UK.

If you have gross payment status then no tax is deducted at all and you receive the full amount you invoice. This does not mean you do not pay tax, it simply means you pay it later through your Self Assessment tax return or Corporation Tax return rather than having deductions taken at source.

When someone talks about checking their CIS status they are really asking which of these three HMRC has recorded against their name or business.

Why checking your CIS status matters

I always stress to clients that CIS is not just an administrative detail, it directly affects cash flow and long term tax planning. If your status is wrong the consequences can linger for months or even years.

If you are incorrectly treated as unregistered you could lose 30 percent of your income upfront and wait until after the tax year ends to reclaim it. If you are registered at 20 percent but should have gross status you are effectively giving HMRC an interest free loan. If HMRC believes you have gross status but you should not, you could face a sizeable tax bill later on.

It also affects your relationship with contractors. Contractors are legally required to verify you before paying and if there is any uncertainty they will often hold payment until it is resolved. I have seen good working relationships strained simply because CIS status was unclear.

Checking your CIS status regularly is one of the simplest ways to avoid these problems.

Who CIS status applies to

CIS status does not only apply to individual builders and this is another area where confusion creeps in. CIS applies to a wide range of people and businesses involved in construction work.

This includes

• Sole traders carrying out construction work

• Partnerships providing construction services

• Limited companies operating as subcontractors

• Labour only subcontractors

• Certain trades such as electricians, plumbers, plasterers, roofers, and groundworkers

It also includes some people who do not think of themselves as working in construction, such as those installing systems, fitting kitchens, or carrying out demolition work.

CIS status does not apply to employees paid through PAYE, and this distinction is important. If you are genuinely employed then CIS should not apply at all. If you are self employed or trading through a limited company and providing construction services then CIS almost certainly applies.

The most reliable ways to check your CIS status

There are several ways to check your CIS status and in practice I often recommend using more than one, especially if something does not look right.

Checking your CIS status online with HMRC

If you are registered for HMRC online services you can check your CIS status through your Government Gateway account. This is usually the quickest method and gives you the most up to date view of what HMRC has on record.

For sole traders and partnerships you would log in to your HMRC online account and look for CIS under your business taxes. For limited companies you would access the business tax dashboard linked to the company.

Within the CIS section you should be able to see whether you are registered and whether you have gross payment status. If gross status has been withdrawn it should also show the date this happened.

I always advise clients to take screenshots or download confirmations, particularly if they are about to start work with a new contractor.

Asking the contractor to verify you

Contractors are required to verify every subcontractor with HMRC before making the first payment. When they do this HMRC confirms the subcontractor’s status and the rate of deduction that should apply.

This means that one of the simplest ways to check your CIS status is to ask the contractor what rate HMRC has confirmed for you. If they say 20 percent or 30 percent when you believe it should be gross then that is a clear signal something needs checking.

From experience this method is particularly useful when online records are unclear or when there has been a recent change such as incorporation or a business name change.

Checking your CIS deduction statements

Every time a contractor pays you under CIS they should provide a CIS deduction statement. This statement shows

• The gross amount of payment

• The amount deducted

• The deduction rate applied

• The tax month the payment relates to

If deductions are being made at 20 percent or 30 percent this tells you immediately how HMRC sees your status at that point in time. I often review these statements when preparing tax returns because they are one of the most reliable indicators of what is actually happening.

Calling HMRC directly

While not always the fastest route, calling HMRC can be effective, especially if there is a discrepancy between what you expect and what you are seeing. You or your accountant can call the CIS helpline and ask them to confirm your registration and payment status.

You will need your UTR and National Insurance number if you are a sole trader, or your company UTR if you are trading through a limited company. HMRC will not discuss details unless they can verify your identity.

In my experience HMRC staff can usually confirm status clearly, although resolving issues may take longer.

Checking gross payment status specifically

Gross payment status is where most confusion and concern arises, largely because it can be removed without people realising.

To hold gross payment status you must meet three tests

• The business test, meaning you carry out construction work in the UK

• The turnover test, which requires a minimum level of turnover from construction activities

• The compliance test, meaning all tax returns and payments are up to date

The compliance test is the one that causes the most problems. Even a single late return or missed payment can trigger withdrawal of gross status.

If you have or believe you have gross payment status you should check it at least annually and ideally before starting new contracts. Once withdrawn it does not automatically reinstate itself, you usually need to reapply and demonstrate compliance for a set period.

What to do if your CIS status is wrong

If you check your CIS status and it is not what you expect the most important thing is not to panic, most issues can be resolved but they do need action.

If you are not registered at all you should register immediately. Registration is not backdated so delays can be costly.

If you are registered but deductions are wrong you should contact HMRC and ask for clarification. In some cases the issue is as simple as a mismatch in UTR or business name.

If gross payment status has been withdrawn you should ask HMRC why and check your compliance history. In many cases I help clients put together a plan to correct outstanding issues and reapply once eligible.

In the meantime you should accept that deductions will continue and plan cash flow accordingly.

How often you should check your CIS status

I recommend checking your CIS status

• When you first register as self employed or incorporate

• Before starting work with a new contractor

• After submitting tax returns or paying overdue liabilities

• At least once a year as part of routine tax planning

CIS issues rarely fix themselves and the earlier you spot a problem the easier it is to deal with.

My experience with CIS checks in practice

From my own experience working with hundreds of CIS subcontractors the biggest issues arise when people assume rather than check. CIS is unforgiving in that sense, HMRC applies what is on their system and contractors must follow it regardless of what they have been told informally.

The clients who stay on top of their CIS status tend to have fewer surprises, better cash flow, and smoother relationships with contractors. It is one of those areas where a small amount of proactive effort pays off many times over.

Looking ahead

CIS is not going away and with increasing digital reporting and compliance checks I expect HMRC to become even stricter over time. Knowing how to check your CIS status and understanding what it means puts you in a strong position.

If there is one takeaway from this article it is this, never assume your CIS status is correct, always verify it. A few minutes spent checking can save months of frustration later on.

You may also find our guidance on check cis payments online and what is a cis number helpful when dealing with related CIS questions. For a broader overview of CIS rules, compliance, and support, you can visit our CIS guidance hub.