CIS Cards - What Are They - Make Sense
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CIS Cards – What Are They

CIS Cards – What Are They

Construction Industry Scheme Cards 

The Construction Industry Scheme (CIS) is a scheme in place in the UK to help ensure that construction workers are paying the correct amount of tax. It is a process in which contractors deduct money from a subcontractor’s payments and pass it on to HMRC. 

So, what is the CIS Card? 

The CIS card is a mandatory card that allows you to work legally as a self-employed construction worker in the UK. The card in issued by the Inland Revenue and displays your name and occupation. Working without this card is illegal and could lead to you receiving fines or even time in jail. 

It’s not the same as the CSCS card which shows your skills and qualifications instead. 

After you register, your contractor will deduct 20% from your salary, which is sent to HMRC. Often this is more than you should be paying, so you can claim a refund in April of the following tax year. For most CIS construction workers, this tax rebate is about £2,000. 

Contractors must register for the scheme whilst subcontractors don’t have to. If subcontractors arent registered, however, they will pay a higher rate of tax deductions. It is through this that the government is encouraging subcontractors to register. 

If you want some more information about the best tax planning solutions for your construction companyYou Know It Makes Sense to get in touch with us today! 

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