20% CIS Registration

The CIS is a HMRC scheme which applies if you work for a contractor in the construction industry but not as an employee, so for example as a self-employed individual. The CIS rules mean that the contractor is usually obliged to withhold tax from its payments to you, at either 20% if you are ‘registered’ or 30% if you are not.

Under the CIS, contractors are required to check whether workers are ‘registered’ with HMRC. In order for the contractor to do this, they will need your Unique Taxpayer Reference (UTR) and National Insurance number.

Any amounts withheld by the contractor will be paid to HMRC as advance payments towards your individual income tax and National Insurance contributions (NIC) bill for the relevant tax year.