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Guidance

Construction Industry Scheme: CIS 340

Use this guidance and the examples included to help you if you are a contractor or subcontractor within the Construction Industry Scheme.

Updates to this page

From:
HM Revenue & Customs
Published:
31 March 2014
Last updated:
27 August 2026
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  1. Section 4.12 has been updated to explain that you need to provide your 13-character reference number when making payments to HMRC. A link to paying employers' PAYE has also been added.

  2. Appendix A.3 in the document 'Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340)' has been updated in relation to contracts relating to construction operations.

  3. Section 2.11 has been updated with information about payments made to subcontractors who are local authorities or public bodies. Section 4.5 has been updated to include 'deemed contractors' and what they must do to tell HMRC if they have not paid any subcontractors in a particular month. Section 4.18 has been updated to confirm the obligation to file a nil return will be reinstated for mainstream contractors, from 6 April 2026.

  4. Updated section 2.2 to confirm when the concern will be a deemed contractor. Updated section 2.5 to confirm the exemption applies to only businesses and not public bodies etc. when the scheme must be applied to land used by third parties and if a business expenditure on construction operation exceeds £3 million in any rolling one year period. Updated section 4.5 on when a business has set a period of inactivity but within the period made a contract payment and needs to submit a return.

  5. Updated section 1.8 to state that employment status is determined in accordance with common law. Updated section 2.12 to provide more clarity around agencies as subcontractors, and added a section about off-payroll working for agencies. Updated section 2.13 to provide more clarity around rules for agency workers, and added a section about off-payroll working for agency workers. Added section 2.14 Agencies as contractors.

  6. Section C.3 of appendix C has been updated to confirm what construction operations are included and excluded from the scheme.

  7. Section 2.2 has been updated to clarify who is deemed a mainstream contractor and to include new section 'Consider if the business is a property investor or property developer'.

  8. The information on how to register at section 1.13 has been updated. Section 4.5 has been updated to confirm a contractor must use the HMRC CIS online service or commercial CIS software to tell HMRC they have not paid any subcontractors in a particular month. Section 4.7 has been updated to remove information to phone HMRC to correct an error. Section 4.9 has been updated remove information to contact HMRC about an incorrect return. A postal address has been added in sections 4.10 and 5.3.1. The postal address in section 5.3 has been updated.

  9. Updated section 4.11 to clarify that the CIS helpline cannot make any amendments to a contractor's returns.

  10. We've updated the guidance in section 3.13 to let contractors know they must check and keep records of the direct cost of materials supplied by subcontractors. We've also updated the guidance to contractors in section 3.14 to let them know they must keep records relating to the direct cost of materials or plant hire spent by subcontractors.

  11. Section 2.16 has been updated with information about how to find out how to make deductions and pay subcontractors and what the current rates are.

  12. Specialist Personal Tax office telephone numbers in section 5.3 Non-resident companies registering for CIS have been updated.

  13. We have updated the examples to include the current VAT rate.

  14. Information has been added to Section 1.10 to say how CIS payments and deductions should be reported to HMRC for individual traders and partnerships.

  15. Updates to this guidance reflect changes introduced to the Construction Industry Scheme, which will apply from 6 April 2021 (legislative changes contained in Finance Act 2021 (currently in draft Finance Bill stage) and Income Tax (Construction Industry Scheme) Amendment Regulations 2021).

  16. The guidance has been updated to show that non-resident companies dealing with UK land must register for UK Corporation Tax.

  17. Updates to the business unit name for non resident companies and changes to the helplines available. Also HMRC are no longer issuing the CIS contractor packs so information about how they can be obtained has been added.

  18. First published.

Documents

Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340)

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This guidance explains the roles of both contractors and subcontractors within the Construction Industry Scheme.

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