The Construction Industry Scheme (CIS) was set up by HM Revenue and Customs (HMRC) to make sure tax payments from the construction industry are collected smoothly. It mainly affects contractors and subcontractors. Under this system, contractors must deduct money from payments to subcontractors, which is then sent to HMRC to cover the subcontractor’s tax and National Insurance contributions in advance. 

 

In the UK, construction professionals, especially contractors and subcontractors, need to follow CIS rules. A CIS accountant is important for: 

 

Contractors: These are businesses or individuals who hire subcontractors for construction work. They need to make sure they’re deducting the right amount and reporting it properly to HMRC. 

 

Subcontractors: These are individuals or companies who do construction work for contractors and get paid under the CIS system. 

 

A CIS accountant helps ensure all deductions are correct, keeps proper records, and ensures both contractors and subcontractors meet their CIS obligations.