Registering for new CIS - advice for subcontractors

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					                                                                           Registering for new CIS
                                                                       - advice for subcontractors

                                   Does new CIS use registration cards, tax certificates or
                                   No. There are no registration cards, tax certificates or vouchers in new CIS.

                                   Instead, we will give you a unique taxpayer reference number that will identify you on
                                   our system. You will need to give this, with your name and National Insurance number
                                   (if known) to your contractor(s). Factsheet CIS344, Getting paid by a contractor – advice
                                   for subcontractors tells you more about this.

                                   Vouchers are replaced by a monthly return which only contractors need to complete.
                                   Factsheet CIS346, The monthly return – advice for contractors tells you more about this.

                                   If you are being paid 'under deduction', your contractor must give you a written or
                                   faxed payment statement (which may also be given electronically where you have
                                   agreed to this method) showing how much you have been paid and the deductions that
                                   have been made from your payments.

                                   Your contractor will give you a payment statement for each tax month or may choose
                                   to give you one with each payment where these are more frequent.

                                   Do I need to register for new CIS?
                                   If you were a subcontractor under the previous CIS (before 6 April 2007) then you don't
                                   need to register for new CIS if you, or your business, had a

                                   • tax certificate CIS5, CIS5(Partner) or CIS6, or

                                   • permanent registration card CIS4(P), or

                                   • temporary registration card CIS4(T) with an expiry date of 04/2007 or later.

                                   But, if

                                   • you are a new subcontractor, and you first start working in the construction
                                     industry on a self-employed basis after 5 April 2007, or

                                   • you last had a temporary registration card CIS4(T) that expired on or before 03/2007

Welsh language                     then you should register for new CIS if you don't want deductions at the higher rate
Yr Iaith Gymraeg/Welsh language.   made from your payments.
Ffoniwch 0845 302 1489 i dderbyn
                                   If you had a tax certificate CIS5 or CIS5(Partner) or CIS6 at the start of new CIS, you will
fersiynau Cymraeg o ffurflenni a
                                   keep gross payment status only where your certificate was due to expire on or after
                                   04/2007. Otherwise, you will only be registered for payment under deduction and a
Large print                        fresh application is needed if you want to be paid gross under new CIS.
This factsheet is
                                   How do I register for new CIS?
available in large
                                   To register for new CIS you should
print. If you would
like a copy, please                • phone our CIS Helpline on 0845 366 7899, or
contact your HM                    • visit if you are not registering for gross payment.
Revenue & Customs                  If we don't already know about you, that is you have not been paying tax or
office.                            National Insurance contributions before, we will ask you to come to a local
                                   HM Revenue & Customs office for an identity check. Please see page 2 for details.

                                                                                                               Please turn over
for new CIS
– use from 6 April 2007
CIS342                                                     Page 1                                                    HMRC 11/05
                                       What are the identity checks?
                                       If we ask you to come to a local HM Revenue & Customs office, you should bring with
                                       you at least two original documents showing your identity (but not photocopies).
                                       Examples of suitable documents for this purpose include

                                       • your birth certificate

                                       • any letters you may have from the Department for Work and Pensions (DWP)
                                         showing your National Insurance number (NINO)

                                       • a utility bill, such as gas, electricity or telephone showing your current address

                                       • council tax bills showing your current address

                                       • a passport

                                       • a driving licence.

                                       I want to be paid gross and not have deductions taken from
                                       my payments
                                       To be paid gross by contractors you work for, you need to apply to HM Revenue &
                                       Customs and pass the tests set by law that show you are running a proper business.
                                       Factsheet CIS343, Applying to be paid gross – advice for subcontractors tells you more
                                       about this.

                                       If you cannot pass the tests to be paid gross, we will set you up for payment 'under
                                       deduction' at the standard rate of deduction.

                                       Being paid 'under deduction'
 Getting advice
                                       After you have registered for new CIS and all checks have been made, if you then
 You can get more detailed advice
 from                                  want to be paid under deduction, on account of your eventual tax and
                                       Class 4 National Insurance bill, you do not need to take any further action.
 • our booklet CIS340, Guide to
   the Construction Industry
   Scheme, and                         What if I don't register as a subcontractor?
 • our other CIS factsheets.           If you work in the construction industry as a self-employed subcontractor and you are
 The booklet, factsheets and           not registered with us, your contractor will be told this when they contact us to check
 other information about new CIS       or 'verify' your payment status.
 are available
 • online at
                                       If you are not registered, or you have not given your contractor the right information so and         that we can match you on our system, then a higher-rate deduction will be made from
                                       your payments.
 • from the CIS Helpline on
   0845 366 7899.                      If this happens to you, please contact us to register and to arrange for these higher-rate
 Our minicom number is                 deductions to be set against your eventual tax and Class 4 National Insurance bill.
 0845 366 7894.

 For advice on Self Assessment,
 call our Self Assessment Helpline
 on 0845 9000 444.

 To register as a contractor, please
 call our New Employer Helpline
 on 0845 60 70 143.

 Our Business Support Teams
 provide help about new CIS over
 the phone, and give presentations
 locally. To find out more, visit

These notes are for guidance only
and reflect the position at the time
of writing. They do not affect any
right of appeal.                                              Page 2