Tax for construction lawyers

This subtopic brings together tax law content considered to be of relevance to construction lawyers.

Construction industry scheme

The construction industry scheme (CIS) was devised to limit the amount of tax lost as a result of sub-contractors in the construction industry under-declaring or failing to notify their chargeability to UK tax. The scheme operates to withhold tax at source at the point of making a contract payment (ie a payment made by a contractor under a construction contract), thereby reducing the risk of a subsequent default by the sub-contractor. However, if the sub-contractor can prove it has complied with the tax obligations it can apply to receive payments gross.

For more information on the CIS, see: Construction industry scheme—overview.

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