• you pay subcontractors to do construction work
• your business doesn’t do construction work but you usually spend more than £1 million a year on construction

You may be a sole trader, in a partnership or own a limited company.

Who is Covered by CIS

The Construction Industry Scheme (CIS) covers most construction work to buildings, including site preparation, decorating and refurbishment.

Mainstream contractors

If your business is construction and you pay subcontractors for construction work, you’re a ‘mainstream’ contractor. This applies if you’re a:

• builder
• labour agency
• gangmaster (or gang leader)
• property developer

Deemed contractors

You count as a ‘deemed’ contractor if your business doesn’t do construction work but you spend an average of more than £1 million a year on construction in any 3-year period. This could apply to:

• housing association or arm’s length management organisations (ALMOs)
• local authorities
• government departments

Exceptions for contractors

CIS doesn’t apply if your work is:

• paid for by a charity or trust
• paid for by a governing body or head teacher of a maintained school on behalf of the local education authority
• on the subcontractor’s own property and worth less than £1,000 excluding materials.

CIS also doesn’t apply if you’re a deemed contractor paying for:

• work on property (that isn’t for sale or rent) for your own business use
• a construction contract worth less than £1,000 excluding materials

Construction work not covered by CIS

There are also certain jobs that are exempt from the scheme, including:

• architecture and surveying
• scaffolding hire (with no labour)
• carpet fitting
• delivering materials
• work on construction sites that is clearly not construction, for example running a canteen or site facilities

This information can also be found on the Gov.uk website or the HMRC website.

We can offer this service remotely online or visit clients business premises.

Contact us on 020 8343 3523 or by email at info@multiplechoiceaccountancy.com for more information.