If you’re working in the UK construction industry as a self-employed subcontractor, you’ve probably heard about the Construction Industry Scheme (CIS). But what exactly is a CIS card? Do you really need it? And how can it affect your income, tax, and reputation? This guide breaks it all down clearly and practically, so you know exactly where you stand and what steps to take.
What is a CIS Card?
A CIS card, or more accurately CIS registration, proves you’re officially registered with HMRC under the Construction Industry Scheme. While HMRC doesn’t issue a physical card anymore, contractors will check your registration to know whether they should deduct tax at 20% or the higher 30% rate from your pay.
In simple terms: being CIS-registered saves you from unnecessarily high tax deductions and makes it easier for contractors to hire you without complications.
Who Can Get a CIS Card?
CIS registration is designed for:
- Self-employed subcontractors working in construction
- Individuals with a Unique Taxpayer Reference (UTR) from HMRC
- People who have a valid National Insurance number
- Anyone doing work covered under CIS rules (we’ll explain what counts below)
You don’t need to be a UK citizen. The key factor is that you’re doing construction work within the UK.
What is a CIS Card For?
The main purpose of being CIS-registered is to ensure that your tax is deducted at the correct rate. Contractors are legally required to deduct tax from subcontractors’ payments under CIS, and registration means you get taxed at the standard 20% rate rather than the punitive 30% for unregistered workers.
It also signals to contractors that you’re compliant with tax laws and serious about your business—helping build trust and credibility.
What Are the Benefits of Getting a CIS Card?
There are some real advantages to being CIS-registered:
- Lower tax deductions: Only 20% tax deducted instead of 30%
- More work opportunities: Many contractors won’t hire unregistered subcontractors
- Professional credibility: Proves you’re compliant with HMRC regulations
- Simpler tax refunds: Easier to claim back overpaid tax at the end of the year
- Access to gross payment status: After 12+ months with a clean tax record, you may qualify to be paid without any tax deducted upfront
In short, CIS registration isn’t just about tax—it’s about positioning yourself as a professional operator in the construction industry.
How Do You Get the CIS Card For Yourself?
Here’s a step-by-step guide to getting registered under CIS:
- Register for Self Assessment if you haven’t already—this gets you your UTR number from HMRC.
- Set up a Government Gateway account at gov.uk.
- Register for CIS online or by phone using your UTR, NI number, and business details.
- Wait for HMRC confirmation—they’ll notify you when you’re officially registered.
- Provide your registration details to contractors—even without a physical card, they can verify your status directly with HMRC.
If you’ve been trading for at least a year and kept up with your tax obligations, you can also apply for Gross Payment Status to be paid without any deductions upfront.
Can I Apply for a CIS Card Online?
Yes, and it’s relatively straightforward. You can register online via the HMRC website. To do this, you’ll need:
- Your UTR number (from registering for Self Assessment)
- Your National Insurance number
- A Government Gateway user ID and password
Prefer to speak to someone? You can also register by calling HMRC’s CIS helpline on 0300 200 3210 (Monday to Friday, 8am–6pm).
One key tip: register as early as possible. If you start working without being registered, contractors are required to deduct tax at 30% until HMRC confirms your registration.
What Kind of Work is Covered by CIS?
CIS applies to most construction activities on buildings, structures, roads, and bridges, including:
- Preparing sites (laying foundations, access works)
- Demolition and dismantling
- Building, repairs, and alterations
- Installing systems (heating, lighting, water, ventilation)
- Decorating and cleaning inside buildings after construction
However, some roles aren’t covered under CIS, such as:
- Architecture and surveying
- Scaffolding hire (without labour)
- Carpet fitting
- Manufacturing or delivering construction materials
- Running a canteen or non-construction site services
For a detailed breakdown of included and excluded activities, read our full guide on CIS.
Is the CIS Scheme Only for British Companies?
No—the CIS applies to any individual or business doing construction work in the UK, regardless of nationality or country of registration.
If you’re an overseas contractor or subcontractor working on UK sites, you’ll still need to register for CIS. Just be aware that there may be additional steps for verifying tax status depending on your home country’s arrangements with the UK.
How Much Does CIS Cost?
Here’s some welcome news: registering for CIS with HMRC is completely free.
You don’t need to pay any registration fees. However, if you choose to use an accountant or tax advisor to manage your registration or tax returns, they may charge professional fees. It’s common for CIS tax return services to cost between £100–£300 depending on complexity.
Watch out for third-party agencies offering “registration services” for a fee—you don’t need them to register, though they may help if you prefer assistance.
CIS Self-Assessment Tax Returns
As a CIS-registered subcontractor, you’re still responsible for filing an annual Self Assessment tax return with HMRC. Even though tax is deducted at 20% from your payments, you may be entitled to a refund or owe more tax depending on your total income and expenses.
Typical deductible expenses include:
- Tools and equipment
- Protective clothing (like PPE)
- Work-related travel and vehicle costs
- Public liability insurance
Keeping accurate records of all income and expenses is crucial for maximising your tax refund. Many subcontractors find they’re due a refund because of allowable expenses.
Don’t forget: the deadline for filing your tax return is 31 January following the end of the tax year. Missing it can lead to penalties, so don’t leave it too late.
Tips for Managing CIS Registration
- Keep Accurate Records: Maintain detailed records of all payments received and expenses incurred. This will simplify the process of completing your Self Assessment tax return and claiming any potential tax refunds.
- Understand Your Deduction Statements: Contractors should provide you with monthly statements detailing the deductions made from your payments. Review these carefully to ensure accuracy.
- Consider Gross Payment Status: If you’ve been in business for at least 12 months and have a good tax compliance history, you can apply for gross payment status, allowing you to receive payments without any deductions.
Why CIS Registration Matters
Being registered under CIS—sometimes still called “having a CIS card”—does more than just sort out your tax deductions. It opens doors to better contracts, keeps more money in your pocket upfront, and builds trust with contractors and clients.
By registering early, staying on top of your records, and filing your tax returns on time, you’ll avoid penalties and unnecessary tax deductions—while setting yourself up as a credible professional in the UK construction industry.
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