If your limited company pays subcontractors for construction work, you must register as a contractor with HMRC under the Construction Industry Scheme (CIS). How you register depends on whether your company is already registered for PAYE.
Already Registered for PAYE?
If your limited company already has a PAYE scheme set up with HMRC, you can add CIS contractor status by calling the HMRC PAYE helpline:
- Call the HMRC Employer Helpline on 0300 200 3200
- Let them know you need to register as a CIS contractor
- Have your PAYE reference number and company details to hand
- HMRC will update your existing PAYE scheme to include CIS
The helpline is open Monday to Friday, 8am to 6pm.
Not Yet Registered for PAYE?
If your company isn't yet registered for PAYE, you can register for both PAYE and CIS contractor status at the same time through the GOV.UK online service.
- Go to the GOV.UK contractor registration page (link below)
- Click the green 'Start now' button
- Sign in with your Government Gateway credentials
- Follow the steps to register for PAYE as an employer
- During the process, you'll be asked if you need to register as a CIS contractor — select yes
Your Obligations as a CIS Contractor
Once registered, you'll be responsible for the following:
- Verify every subcontractor with HMRC before making the first payment to them
- Deduct 20% from payments to registered subcontractors (or 30% if unregistered)
- Submit a monthly CIS return to HMRC — even if you made no payments that month
- Provide each subcontractor with a written payment and deduction statement
- Keep records of all payments and deductions for at least 3 years
Need Help?
CIS can feel overwhelming — monthly returns, deductions, and verifying subcontractors all add up. Our CIS and construction accounting service can take it off your plate entirely.
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Common Questions
Do I need to register as a CIS contractor?
Yes — if you pay subcontractors for construction work, you must register as a contractor with HMRC under the Construction Industry Scheme. You'll need to verify subcontractors, make deductions from their payments, and submit monthly returns.
What if I'm already registered for PAYE?
If your limited company is already registered for PAYE, you can add CIS contractor status by calling the HMRC PAYE helpline. They'll update your existing PAYE scheme to include CIS.
What if I'm not registered for PAYE yet?
If you're not yet registered for PAYE, you can register for both PAYE and CIS contractor status at the same time through the GOV.UK online service. This is the quickest way to get set up.
What are my obligations as a CIS contractor?
You must verify all subcontractors with HMRC before paying them, deduct the correct amount from their payments (20% for registered subcontractors, 30% for unregistered), submit a monthly CIS return to HMRC, and keep records of all payments and deductions.
How do I verify a subcontractor?
Once registered as a contractor, you can verify subcontractors through your HMRC online account. You'll need their legal name, UTR, and National Insurance number. HMRC will tell you the correct deduction rate to apply.