How to Register for CIS

Learn how to register for the Construction Industry Scheme (CIS) with HMRC as a contractor or subcontractor. Step-by-step guide for sole traders and companies.

How to Register for CIS

If you work in the UK construction industry as a contractor or subcontractor, you may need to register for the Construction Industry Scheme (CIS). Managed by HMRC, the scheme sets out how subcontractors are paid and how tax is deducted from their earnings. Whether you're setting up as a sole trader or running a limited company, registering for CIS helps ensure you are paid correctly and stay compliant with tax regulations.

In this guide, we’ll explain who needs to register, the steps involved, and what to expect after you’ve joined the scheme.

What Is the Construction Industry Scheme?

The Construction Industry Scheme is a system set up by HMRC to regulate payments between contractors and subcontractors in the construction sector. Under CIS:

  • Contractors deduct money from a subcontractor’s payments and pass it to HMRC

  • The deduction is treated as advance payment towards the subcontractor’s tax and National Insurance

  • Subcontractors who are registered with HMRC have 20 per cent deducted

  • Subcontractors who are not registered have 30 per cent deducted

  • Some subcontractors can apply for gross payment status, meaning no deductions are made

The goal is to reduce tax evasion and ensure proper tax collection within the construction industry.

Who Needs to Register?

You must register for CIS if you are:

  • A contractor: You pay subcontractors for construction work, or you spend over £3 million on construction in a 12-month period

  • A subcontractor: You are paid by contractors to carry out construction work

You can also be both a contractor and a subcontractor, in which case you must register for both roles.

Subcontractors can register as:

  • Sole traders

  • Partnerships

  • Limited companies

How to Register as a Subcontractor

The registration process is different depending on your business structure. Here's how to register as a subcontractor under CIS:

For Sole Traders

  1. Register for Self Assessment
    If you are not already registered as self-employed, visit www.gov.uk/register-for-self-assessment and follow the instructions. HMRC will send you a Unique Taxpayer Reference (UTR) by post.

  2. Register for CIS
    Once you have your UTR, call the CIS helpline on 0300 200 3210, or register online through your Government Gateway account. You’ll need to provide:

    • Your UTR

    • National Insurance number

    • Business name (if applicable)

    • Bank account details

  3. Confirmation
    HMRC will confirm your registration and inform you whether you qualify for the 20 per cent deduction rate or if you need to apply for gross payment status.

For Limited Companies

  1. Register the company with Companies House
    If you haven't already, set up your limited company and register for Corporation Tax.

  2. Apply for CIS through your Business Tax Account
    Once your company is registered and you have a UTR, sign into your HMRC Business Tax Account and add CIS as a service.

  3. Provide company details
    You’ll need:

    • Company UTR

    • Company registration number

    • Director details

    • Business bank account information

  4. Wait for confirmation
    HMRC will confirm your status and let you know if you are eligible for gross payment status.

How to Register as a Contractor

To register as a contractor, you will need to:

  1. Log in to your HMRC Business Tax Account

  2. Add the CIS service to your account

  3. Provide your details, including:

    • UTR

    • Business name and address

    • Details of your subcontractors

    • Payment schedule and estimated amounts

Once registered, you’ll be responsible for verifying subcontractors with HMRC, making deductions, submitting monthly CIS returns, and paying HMRC on time.

What You’ll Need Before Registering

To make the process smooth, have the following ready:

  • Your Unique Taxpayer Reference (UTR)

  • National Insurance number (for individuals)

  • Company registration number (for limited companies)

  • Government Gateway login details

  • Bank account details

If you're registering online, make sure you have access to your email and phone for verification codes.

How Long Does Registration Take?

Once submitted, CIS registration typically takes 10 to 15 working days. If applying online, it may be quicker. Keep an eye out for confirmation letters or emails from HMRC.

After You Register

Once you are registered:

  • Subcontractors will have 20 per cent deducted by contractors (instead of 30 per cent if unregistered)

  • You can apply for gross payment status if you meet HMRC’s conditions

  • Contractors must start submitting monthly CIS returns and pay deductions by the 22nd of each month

Be sure to keep proper records and submit tax returns on time to stay compliant.

Final Thoughts

Registering for CIS is an essential step for anyone working in the UK construction industry, whether as a contractor or a subcontractor. It ensures the correct tax is paid and allows you to operate professionally within the sector. While the process varies slightly depending on your business structure, it’s straightforward once you have the necessary information ready.

By registering early and following the correct procedures, you can avoid higher tax deductions and start building your business on the right foundation.