There are two types of CIS registrations for subcontractors:

  • A “paid under deduction” registration where the contractor will deduct 20% tax from payments made
  • A “paid gross” registration where payments made by the contractor are gross

Where a subcontractor is not registered for CIS, the contractor will deduct 30% tax. This means it is essential to ensure a subcontractor CIS registration is in place as soon as possible.

The good news is that overseas companies are generally able to obtain a “paid gross” registration status. However, you need to act quickly because HMRC applications take 6-8 weeks to process and you may be paid under deduction in the meantime. Don’t worry if this happens – we can recover any deducted tax from HMRC on your behalf.

Looking for something else?

Head back to Construction industry scheme (CIS) or see all the services we offer.

Want to find out more?

Speak to our team and find out how we can get you up and running for your next venture in the UK.

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