Construction Industry Scheme

The Construction Industry Scheme (CIS) is a tax initiative in the UK designed to regulate how construction workers and contractors are paid. Under this scheme, contractors must deduct money from payments made to subcontractors. This deduction is then paid to HM Revenue and Customs (HMRC) as a form of tax. The aim is to ensure that those working in the construction industry, including self-employed workers, pay the correct amount of tax. The scheme helps to prevent tax evasion and ensures compliance among businesses in the construction sector. Subcontractors can register with HMRC to reduce the amount deducted.