As a contractor, you must register for the CIS scheme with HMRC. Subcontractors do not have to register, but their tax will be deducted at a higher rate if they are not registered.
Register as a contractor if either:
- you pay subcontractors for construction work
- your business does not do construction work, but you spend an average of more than £1 million a year on construction in any 3-year period
Register as a subcontractor if you do construction work for a contractor.