The Construction Industry Scheme (CIS) For SMEs

The Construction Industry Scheme (CIS) is a government tax deduction scheme that applies to payments made by businesses for construction work. The scheme is designed to ensure that the correct amount of tax is paid by both contractors and subcontractors.

For SMEs, CIS can be a complex scheme to understand and comply with. However, there are a number of things that SMEs can do to make the process easier.

1. Register for CIS - The first step for SMEs is to register for CIS. This can be done online at the HMRC website. Once registered, SMEs will be given a CIS number.
2. Verify subcontractors - Before making ANY payments to subcontractors, SMEs must verify that the subcontractors are registered for CIS. This can be done by checking the CIS Checker website.