This guide was last updated on:
March 5, 2023
You will need to take the following steps to register for CIS:
- You’ll need to have registered for HMRC online services, and enrolled for self employment
- You will receive a Government Gateway ID and a UTR
- You need to log in and register for CIS
- Select which CIS Payment Status you require – either net or gross status
- If you choose net payment status your contractor will deduct 20% of everything you earn before paying you
- Everyone qualifies for net payment status
- Likelihood is that you will be deducted too much tax when your expenses are taken into account, and will be entitled to claim a refund
- If you choose gross payment status
- No tax is deducted from your payment by the contractor
- There is a set of requirements that must be met in order to qualify:
- Your earnings exceed £30,000
- All of your tax affairs are in order and have been filed and paid on time
- You operate a dedicated business bank account
If you don’t register for CIS, contractors can deduct 30% of your payments so it is in your interests to register at the earliest opportunity
