CIS applications, problems and penalties

The Construction Industry Scheme (CIS) requires registration of anyone who works in that industry, be that a sole trader or a company. The registration rule includes the largest of businesses if that business is paid by another engaged in construction operations. Since 6 April 2021 non-construction businesses that regularly carry out or commission construction work on their own premises or investment properties are deemed to be contractors should that work have exceeded £3 million within the previous 12 month period.. Smaller non-construction businesses are excluded from the scheme as are private households. However, where a builder working in a private property then subcontracts work to other tradesmen (e.g. bricklayers, electricians, plumbers etc), then that builder must operate the CIS even though the works are undertaken on a private home because the contract is between the two businesses.