Construction Industry Scheme (CIS)

The Construction Industry Scheme (CIS) is a UK tax arrangement for contractors and subcontractors in construction. It requires contractors to deduct a portion of payments to subcontractors before paying them, which is then forwarded to HM Revenue & Customs (HMRC) as advance tax. Subcontractors can also register under CIS to handle their taxes efficiently. The scheme aims to prevent tax evasion and ensure correct tax payments within the construction sector. Both contractors and subcontractors must follow CIS rules, keep accurate records, and submit regular tax declarations.