Who must Register with the CIS?

All contractors who work within defined sectors of the construction industry must, by law register with the CIS. Although it is not obligatory for individuals who wish to work on a self-employed basis within the construction industry to register under the CIS, if you do not register the deductions your contractor is obliged to take from you will be 30% of your earnings, rather than the standard rate of 20%.  All sub-contractors are entitled to a payment deduction statement from their contractor on a monthly basis, and must complete an annual self-assessment for tax.