How do I get gross payment status?

You need to apply to HMRC and meet three tests: a business test (you run a construction business in the UK), a turnover test (minimum GBP 30,000 per year for sole traders), and a compliance test (you've filed returns and paid tax on time). HMRC reviews your status periodically.

Can I reclaim CIS deductions?

Yes. CIS deductions are credited against your Self Assessment income tax and NIC liability. If deductions exceed your tax bill, you can claim a refund. Limited companies offset CIS against their PAYE/NIC liability monthly.

Do subcontractors also pay National Insurance?

Yes — self-employed subcontractors pay Class 4 NI at 6% on profits between GBP 12,570 and GBP 50,270 and 2% above, in addition to income tax (SSCBA 1992 s.15).

UK CIS Calculator

Calculate Construction Industry Scheme deductions

The Construction Industry Scheme (CIS) requires contractors to make deductions from payments to subcontractors. The deduction is 20% for registered subcontractors or 30% for those not registered with HMRC. Subcontractors with gross payment status receive the full amount. Materials costs are always exempt from deductions. CIS deductions count as advance payments of the subcontractor's tax and NIC.

Frequently Asked Questions

How do I get gross payment status?+
Can I reclaim CIS deductions?+
Do subcontractors also pay National Insurance?+