Construction Industry Scheme

The Inland Revenue have a scheme in place in order to tax 20% on the labour element of any construction work that is deemed under the above-mentioned scheme.

We the council are the contractor, and the company we employ to do the job on our behalf are the subcontractor. Subcontractors that are participating in the scheme hold a registration document. There are three types of registration:

  • CIS4 - a small credit card sized white card, with photo of holder;
  • CIS5 - holders of this card are only required to supply us with a piece of their headed paper stating the details of their card (registration number, expiry, cardholder etc);
  • CIS6 - A small credit card sized white card, with photo of holder.

Holders of these cards must bring them into the Civic Offices on the submission of their first invoice to the authority. If the invoice is received without the CIS card being verified then it will be held on the system and will remain unpaid until we have the details we require, this is due to the fact that if we do not follow the HM Revenue & Customs guidelines we can incur monetary penalties.

For more information and guidance regarding the Construction Industry Scheme, please visit www.hmrc.gov.uk/cis.