Types of work covered by the CIS
CIS can apply to all types of businesses that work in the construction industry in the UK.
These can include:
- Self-employed individuals working as sole traders
- Partnerships
- Companies
- Limited Liability Partnerships (LLP’s)
As well as traditional construction businesses like builders, the scheme can also apply to businesses like…
- Labour agencies and staff bureaux
- Gangmasters or gang leaders
- Property developers
Who could this apply to?
- Some large businesses
- Housing associations
- Other ‘arms length’ management organisations (ALMO’s)
- Local Authorities
- Government departments
- Other public bodies
If your business is based outside the UK, the CIS still applies if it does work in the UK or UK territorial waters that are covered by the scheme. Businesses or other organisations whose work is covered by the CIS could be contractors, subcontractors, or both.
What are construction operations?
CIS covers construction operations carried out in the UK. The rules of the scheme define the types of work that are classed as construction operations. But as a general rule, the scheme includes almost any work that’s done to a:
- Permanent building
- Temporary structure
- Civil engineering work or installation
What construction jobs are covered by the CIS?
- Site preparation
- General construction – bricklaying, roofing, plastering, and so on
- Alterations and extensions
- Repairs and refurbishment
- Decorating
- Dismantling work
- Demolition
The scheme defines ‘construction’ as a term with a broad meaning that includes
- Building things
- Making things
- Putting things together
- Assembling things
So, construction work includes, for example, assembling prefabricated units and site facilities that have been made off-site.
Work that can sometimes be construction work
There are some types of work that aren’t automatically treated as construction operations, but can be in certain situations. For example, tree planting and landscaping aren’t construction operations if they’re part of estate management or forestry work. But HMRC would treat them as work that’s covered by the CIS if they were done in the course of building a new housing development.
Contracts with some construction work and some non-construction work
If you get a single contract that covers several tasks but only some of them are construction operations, HMRC will treat the whole contract as coming under the CIS. They will do this even if you put the different tasks on separate invoices.
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