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C · Glossary

CIS scheme

HMRC's tax-deduction scheme for the construction industry.

The Construction Industry Scheme (CIS) is HMRC's system for deducting tax from sub-contractor payments. Contractors deduct 20% (or 30% unverified) before paying the sub-contractor, and submit it to HMRC monthly.

Sub-contractors reclaim over-deduction via Self Assessment. Average refund: £600–£1,800 per year.

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