CIS refers to Construction Industry Scheme engagement and invoicing. This is a term used in the construction industry when referring to contractors who pay sub-contractors to perform work for them.

The Construction Industry Scheme (CIS) sets the rules which contractors must follow regarding how they pay their sub-contractors for this work.

This scheme was developed by HMRC and it only applies to the United Kingdom’s construction industry. Other countries and territories have their own rules for construction and payments to sub-contractors.

The Construction Industry Scheme sets out the rules for how payments to sub-contractors for construction work must be handled by contractors in the construction industry.

We invoice you on a weekly basis. We will pay your sub-contractors based on the monies received from you, minus our CIS Engagement Fee and their CIS deduction rate which is set by HMRC when they register for CIS. We verify this rate when we register them.

Their payment will be paid into their bank account on a weekly basis.

Our registrations team will arrange access to their Fair Pay Companion portal where they can view and download their pay statements, access online GP services, high street savings and much more.  This can be accessed online or via our user-friendly Android or iOS smartphone apps.

CIS can apply to any employment agency or end client / hirer that supplies self employed sub-contractors to the construction industry.

Subject to a Supervision, Direction and Control assessment to ensure that the sub-contractor is genuinely self employed, Fair Pay Services will be able to pay them through our CIS engagement scheme and take the administrative burden away from you.

We will;

• Verify the sub-contractor with HMRC
• Calculate and deduct CIS tax, then pay across to HMRC
• Inform the sub-contractor the amount they will be paid
• Take all responsibility for all status submissions to HMRC
• Provide both a payment statement (for each time the sub-contractor is paid) and an annual CIS deduction statement
• take away the risk of CIS penalties

To work with us, you can get in touch with our friendly Sales team on 01604 360222 or [email protected].  Once you have an account setup, you can simply send your sub-contractors details through to your account manager, or directly to our Registrations team at [email protected].

Your sub-contractors have to be registered as self-employed with HMRC to be eligible to be paid through Fair Pay Services’ CIS engagement scheme.

To register as self-employed they can call HMRC’s Newly Self-Employed Helpline on 0300 200 3500. At the same time they should also be able to register for the Construction Industry Scheme (CIS).

To register as a sub-contractor they must have a National Insurance number. If they do not have one, they can contact the Department for Work and Pensions on 0800 141 2075.

Once registered for CIS, they will then receive a Unique Tax Reference (UTR) which is a 10 digit number.

If they have any issue regarding CIS or in getting a UTR then a CIS Helpline is available from HMRC on 0300 200 3210.

To register with Fair Pay Services they can call 01604 360222.