Working in Traffic Management or Construction as a subcontractor or self-employed tradesperson? 

Then you’ll need to know about CIS – the Construction Industry Scheme. Don’t worry, it’s not as complicated as it sounds. Here’s a simple guide to help you understand how it works and what you need to do.

What is CIS?

CIS is a tax scheme from HMRC for people working in the Traffic Management & Construction industries. Under CIS, contractors take a tax deduction from your pay and send it to HMRC. This goes towards your end-of-year tax bill.

If you’re a subcontractor, CIS helps make sure your tax is being paid. If you’re a contractor or agency, it’s your responsibility to make CIS deductions from your subcontractors and file monthly returns.

Do I Need to Register for CIS?

      Role                                                              Do you need to register?

                           Subcontractor (most tradespeople)                                                                      ✅ Optional but recommended

                           Contractor (paying subcontractors)                                                                       ✅ Yes – legally required

                           Both (you work and hire others)                                                                             ✅ Must register as both

If you don’t register as a subcontractor, your agency or contractor that supply you with work will take 30% tax from your payments. 

If you are registered, they only deduct 20%. So registering means more money in your pocket each week.

How to Register for CIS (Subcontractors)

Registering only takes a few minutes online. You’ll need your National Insurance number and UTR (Unique Taxpayer Reference).

👉 Click here to register with HMRC:
https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/how-to-register

Steps:

1. Make sure you’re registered as self-employed with HMRC.
   
   

2. Get your UTR number (if you don’t have one yet).
   
   

3. Sign in with your Government Gateway account.
   
   

4. Complete the CIS registration as a subcontractor.
   
   

5. Give your UTR to any contractors so they can verify you.
   
   

What Does CIS Deduct?

CIS deductions are taken before expenses. That means you can claim back things like:

• Tools & equipment
  
  

• Travel & fuel to sites
  
  

• Protective clothing
  
  

• Public liability insurance
  
  

• Business phone costs
  
  

• Accountancy/bookkeeping fees
  
  

This is why most contractors get a tax refund at the end of the year — especially if they claim their expenses properly.