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Construction Industry Scheme (CIS)

1st Pay ensures compliance with legal requirements.

What is CIS?

CIS stands for Construction Industry Scheme. This term is commonly used in the construction industry to describe the system where contractors pay subcontractors for their services.

The CIS Payroll establishes the regulations that contractors must adhere to when paying their subcontractors for work. This scheme was developed by HM Revenue and Customs and is specific to the United Kingdom’s construction industry. Other countries and territories have their own rules governing construction and subcontractor payments.

When a contractor is registered under this scheme, they are required to deduct a specific amount from the payments made to their subcontractors and then forward this amount to HM Revenue and Customs (HMRC). This deduction serves as an advance payment to cover the National Insurance and taxes that subcontractors are obligated to pay. The government implemented this scheme to prevent subcontractors from evading tax payments. Therefore, HMRC established this process to ensure that contractors withhold the necessary funds from subcontractor payments and use them to settle their tax liabilities.


Learn how 1st Pay can help your business maximize opportunities

Talk to our team of experts today to learn how 1st Pay for CIS can truly benefit you.

Who we work with

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Civil Engineers

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