What is CIS (Construction Industry Scheme)?

The Construction Industry Scheme is an HMRC tax-withholding regime for payments from contractors to subcontractors in UK construction. Contractors deduct 20% (verified) or 30% (unverified) from the labour element of each payment and remit it to HMRC. Gross payment status is available to subcontractors meeting turnover and compliance tests. CIS does not replace VAT or PAYE — it sits alongside them.