Contractors

The scheme covers all ‘construction operations’ – construction work – carried out in the UK, as well as some other related work.

Livingstones offer services to both Contractors and Subcontractors.

When are you a subcontractor under CIS?

CIS uses its own special definition of the term subcontractor. So even if you don’t normally think of yourself as a subcontractor, you could be treated as one under CIS.

Under the rules of CIS, you’re a subcontractor if you agree to do construction work for a contractor. It doesn’t matter how you actually carry out the work – you could do it yourself, get your employees to do it, use your own subcontractors or make some other arrangement.

Subcontractors can be self-employed individuals, any type of business, or other bodies and organisations.

When are you a contractor under CIS?

Under the rules of CIS, you’re a contractor if:

• you run a business that engages subcontractors for construction operations – a ‘mainstream’ contractor
• you run a business that spends an average of £1 million or more a year over a three year period on construction operations – a ‘deemed’ contractor

Any type of business, including a company, partnership or self-employed individual, can be a CIS contractor. If you are contracted to work in domestic households and you engage subcontractors you are a CIS contractor and will have to operate CIS. However, if you’re a private householder you’re not a contractor, no matter how much you spend.