Who Must Register for CIS?

• Contractors – Must register and deduct tax from subcontractor payments.
• Subcontractors – Should register to avoid higher 30% tax deductions (instead of 20%).

Tax Deductions Under CIS

• 20% Deduction for Registered Subcontractors – Withheld as an advance tax payment.
• 30% Deduction for Non-Registered Subcontractors – Higher deductions apply if not registered.
• Gross Payment Status – Allows subcontractors to receive full payments without deductions.

Compliance & Record-Keeping

• Monthly CIS Returns – Contractors must submit details of payments and deductions to HMRC.
• Payment & Deduction Statements – Subcontractors should receive monthly payslips showing tax deductions.
• Retention of Records – Keep CIS records for at least 3 years for tax audits.