Question 1

How does CIS tax registration work?

Accepted Answer

Subcontractors register with HMRC to have 20% deducted instead of 30% for unregistered. You can apply for gross payment status (0%) if you meet HMRC's compliance, turnover, and business tests.

Question 2

How do I get gross payment status under CIS?

Accepted Answer

Apply to HMRC once you meet three tests: Business test, Turnover test (at least £30,000 annual turnover), and Compliance test (all tax returns filed and tax paid on time for 12 months).

Question 3

Can I reclaim overpaid CIS deductions?

Accepted Answer

Yes — if CIS deductions exceed your actual tax liability, you get a refund through self-assessment. CIS deductions count as advance payments of tax. Many subcontractors are due refunds of £2,000-£5,000+ per year.

Question 4

Am I a subcontractor or an employee under CIS?

Accepted Answer

This depends on control, substitution rights, equipment provision, and financial risk. If you're actually an employee, CIS doesn't apply and PAYE should be operated instead.

CIS Tax Calculator 2025/26 — Construction Industry Scheme

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