Wondering how to register for the Construction Industry Scheme? You aren’t alone! As a leading provider of construction accountancy services, we have guided plenty of customers through the CIS registration process. Whether you are a contractor or subcontractor, a sole trader or limited company, we can help you. So here is everything you need to know about how to register for CIS and why it’s beneficial to work with us.
Summary
• Contractors and subcontractors must register for CIS
• How you register depends on whether you are a sole trader or a limited company
• Registration can take around 10 days to be confirmed
What is CIS?
Before we talk about how to register for CIS, what exactly is it? It is a scheme that was designed to help tackle tax evasion in the construction industry and ensures that contractors account for tax on payments made to subcontractors. They deduct money from the payments made to subcontractors and forward it to HMRC, and those deductions are then treated as advance payments toward the subcontractor’s tax and National Insurance obligations. So far, so simple!
If you want a more detailed breakdown, take a look at our guide on What is the Construction Industry Scheme?, where we explain how it works and why it is so important for construction businesses.
How to Register for CIS as a Contractor
If you’re a contractor or plan to become one soon, then you must register for CIS by law. Failure to do so can result in penalties and other costs, so it is something that you simply cannot afford to skip. Before you even get started with your CIS registration, though, you need to be registered as an employer with HMRC. This will ensure that you have a PAYE scheme set up to handle tax and National Insurance for your staff.
Now comes what you are here for! Registering for CIS can be done online, over the phone, or by post. In terms of convenience, online tends to be the best choice. Simply log into your Government Gateway account, click to register for CIS and follow the instructions.
How to Register for CIS as a Subcontractor
Before you register for CIS as a subcontractor, you need to determine whether you are doing so as an individual, a sole trader, a partnership, or a limited company. The registration process is slightly different for each one.
How to register for CIS as a sole trader:
Make sure that you are registered for Self Assessment on the HMRC website.
How to register for CIS as a limited company:
You will need to register the company with Companies House and register for Corporation Tax with HMRC.
Once you have taken either of those steps, just log into your HMRC account and when asked to do so, enter your UTR, National Insurance number for sole traders, or company registration number for limited companies.
You may also find it useful to read our article on How CIS Works for Contractors and Subcontractors, which goes into more detail about how deductions are applied and what your responsibilities are depending on your role.
Do you Need to Register for Both?
If you work as a contractor but also carry out work for others, then you need to be registered for CIS as a contractor and subcontractor. Many people feel daunted at this, worrying that one will negatively impact the other or that things will become confusing. There’s no need to stress about it, though! Plenty of construction industry professionals are registered for CIS as a contractor and subcontractor.
If you aren’t sure if you need to be registered for both or you just want some guidance, we can help. Contact our team, and we will look over your operations and provide advice on what to do next.
How Long Does it Take to Register for CIS?
It can take around 10 days for HMRC to process and confirm your CISI registration, so it makes sense to do it as soon as possible.
Talk to Us Today
Want to find out more about how to register for CIS scheme and how we can help you with your construction accounting needs? Then get in touch today!
Whether you are setting up a construction company for the first time or making the switch from another accountancy provider after many years, we are ready to give you all the support and guidance that you need.
