🔹 Introduction
If you’re a contractor in the UK construction industry, you are legally required to register for the Construction Industry Scheme (CIS). Failing to register could lead to severe HMRC penalties and may also affect your ability to hire subcontractors efficiently.
This guide walks you through exactly how to register for CIS as a contractor, what details you’ll need, and common mistakes to avoid.
🔹 Do You Qualify as a Contractor Under CIS?
You are considered a CIS contractor if:
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You pay subcontractors for construction work, even occasionally
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You spend £3 million or more on construction in any 12-month period (even if construction isn’t your main trade)
This includes:
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Builders
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Property developers
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Local authorities
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Housing associations
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Companies managing property portfolios
🔹 Why You Must Register
Contractors must:
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Deduct tax from subcontractor payments
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Submit monthly CIS returns to HMRC
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Keep accurate records
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Provide deduction statements to subcontractors
Failure to register and comply can lead to:
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£100+ late filing penalties
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Tax payment issues
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HMRC audits
🔹 Step-by-Step: How to Register as a Contractor
🟢 Step 1: Set Up a Government Gateway Account
If you don’t already have one:
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Visit HMRC Services
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Choose “Create sign-in details”
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Save your User ID and password
🟢 Step 2: Enrol for HMRC Online Services
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Log in to your Government Gateway
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Select “Services you can add”
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Choose “Construction Industry Scheme (CIS) for contractors”
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You’ll need:
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UTR (Unique Taxpayer Reference)
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Company registration number (if applicable)
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National Insurance number (for sole traders)
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Business address
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🟢 Step 3: Verify Subcontractors
Once registered, you’ll need to:
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Log in to your CIS account
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Use the HMRC Subcontractor Verification Tool
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Enter each subcontractor’s UTR and NI/CRN
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HMRC confirms deduction rate (20%, 30%, or 0%)
🟢 Step 4: File Monthly Returns
Every month (by the 19th), submit:
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Names of subcontractors paid
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Total payments and deductions
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Nil return if no payments are made
🔹 Required Information for Registration
| Data | Required For |
|---|---|
| UTR | Contractor verification |
| NI number / CRN | Identity confirmation |
| Trading name/company name | HMRC records |
| Business address | Official communications |
| Type of business | Sole trader/partnership / ltd |
🔹 Common Mistakes When Registering
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Using incorrect UTR or NI numbers
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Missing verification before the first payment
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Forgetting to submit Nil returns
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Registering as a subcontractor instead of a contractor
🔹 FAQs
How long does CIS registration take?
Typically, 5–10 working days.
Can I register as both a contractor and subcontractor?
Yes—many businesses operate in both roles and must register as both.
Do I need to verify subcontractors every time?
No, only when they’re new or after long inactivity.
🔚 Final Thoughts
Registering as a CIS contractor isn’t just a compliance checkbox—it’s the foundation for running a legal and efficient construction business. With registration in place, you can confidently hire subcontractors, file returns, and avoid HMRC trouble.
Need help registering or managing CIS monthly? Contact our CIS accounting experts today.