CIS or Construction Industry Scheme was established in 1999 and applies to self-employed individuals working in the construction industry.
Self-employed construction workers can work through Generate’s construction contracting company, allowing them to be paid under CIS rules and claim tax-deductible expenses in their year end tax return.
Each CIS subcontractor is given a tax status by HMRC, which determines the percentage deducted from their income. Individuals receive a CIS voucher each time they are paid, showing the amount of tax deducted.
These amounts can then be offset against their actual tax liability at the end of the tax year. In many cases, a tax refund is paid out by HMRC after submission of a Self-Assessment tax return.
To qualify for CIS, individuals must be genuinely self-employed, and not subject to supervision, direction or control by any other party.