Construction Industry Scheme
The Construction Industry Scheme (CIS) is a tax deduction scheme which involves tax being deducted at source from payments which relate to construction work for self employed people.
CIS does not apply to payments made to employees, since payments made to employees are covered by the Pay As You Earn (PAYE) system of deducting tax at source.
For many people CIS is extremely complicated and confusing. We, at Crown Accountants, are vastly experienced in the construction industry and always stress to our clients that it's not a tax you physically suffer. In fact, for most self-employed individuals, it is a self-induced tax planning system.