CIS for tradespeople: subcontractor and contractor basics
When the Construction Industry Scheme may apply to payments for building work.
Applies to: UK tradespeople and construction businesses; check HMRC for your particular status.
Last checked: 16 October 2026
Key points
• CIS usually matters when a construction contractor pays a subcontractor for covered work.
• Private householders are not normally CIS contractors when paying for work on their own homes.
• Registered, verified subcontractors are generally subject to 20% deductions; the unregistered rate is typically 30%, subject to rules and status.
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Identify your role
You may be a subcontractor when a construction business hires you for bricklaying, tiling or other covered work. If you pay subcontractors, you may also have contractor obligations even if you are a sole trader.
What to check
• Whether the payer is a CIS contractor and the work is within the scheme.
• Your HMRC registration and verification details.
• What counts as materials and how deductions are calculated.
• Monthly deduction statements and the records needed for tax returns.
• Whether gross payment status applies to your business.
Domestic customers are different
An ordinary homeowner directly paying for work on their private home is not generally required to operate CIS. A builder employing a subcontract bricklayer on that same job may have CIS responsibilities.
Official sources
Use these official sources for the current detail that applies to your job, contract or location.
BuildPair provides general information and signposting, not legal, structural, electrical, gas or building-control approval. Requirements can change and the right answer depends on the work, contract, location and facts.
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