What is a CIS card and do you need one?

What is a CIS card and do you need one?

If you are self-employed in construction, there is a good chance you have heard people mention a CIS card without ever properly explaining what it is or why it matters.

That can be a problem. Because if you are not registered under the Construction Industry Scheme (CIS), contractors are required to deduct more tax than necessary from your pay. That money does not disappear, but it can take time and effort to get back.

This guide explains what a CIS card is, who needs one, how CIS deductions work, and why registering early can make a real difference to your take-home pay.

What is a CIS card?

A CIS card is proof that you are registered as a subcontractor under the Construction Industry Scheme, which is run by HMRC.

CIS is a tax scheme for self-employed people working in construction. Instead of paying tax later, a percentage is deducted from your payments by contractors and sent to HMRC on your behalf.

The CIS card, whether physical or digital, shows contractors that you are registered and tells them which tax deduction rate they must apply to your payments.

How CIS tax deductions work

Under CIS, contractors deduct tax from your labour payments before you are paid.

These deductions are not your final tax bill. They are advance payments towards the tax you may owe at the end of the year.

Because deductions are taken without knowing your personal allowance or expenses, many subcontractors end up overpaying tax and are due a refund later.

CIS deduction rates explained

The amount deducted from your pay depends on your CIS registration status.

Not registered for CIS (30% deduction)

If you are not registered, contractors must deduct 30% of your labour payments.
For example:

• £1,000 labour payment
• £300 deducted
• £700 paid to you

This higher rate is designed to protect HMRC, but it can cause cash flow issues for subcontractors.

Registered for CIS (20% deduction)

Once registered, your deduction rate drops to 20%.
Using the same example:

• £1,000 labour payment
• £200 deducted
• £800 paid to you

That 10% difference adds up quickly over weeks and months.

Gross Payment Status (0% deduction)

Some subcontractors can apply for Gross Payment Status, meaning no tax is deducted at source.
You receive your full payments and pay tax later through Self Assessment.

HMRC only grants this status if strict conditions are met, including turnover thresholds, accurate record keeping, and a strong compliance history.

Who needs a CIS card?

You will usually need a CIS card if you are a self-employed subcontractor carrying out construction work, including:

• Building and civil engineering
• Electrical and plumbing work
• Roofing, plastering and carpentry
• Painting and decorating
• Scaffolding and plant hire
• Labour-only subcontracting

If you are providing labour on construction sites and being paid gross as self-employed, CIS registration is likely required.

Who does not need a CIS card?

You may not need a CIS card if:

• You are employed and paid through PAYE
• You only work for private homeowners
• Your role is outside the CIS scope, such as design or admin

If you are unsure, it is better to check early rather than risk higher deductions.

How to register for a CIS card

Registering for CIS involves signing up properly with HMRC.
You will need:

• Your Unique Taxpayer Reference (UTR)
• Your National Insurance number
• Proof of identity
• A UK bank account
• If you are not already registered as self-employed, that must be done first.

Once registered, HMRC activates your CIS status and contractors can verify you.

How CIS affects your tax return

Being registered for CIS does not replace your tax return.
Each year, you must complete a Self Assessment tax return to:

• Declare your income
• Report CIS deductions
• Claim allowable expenses

This process determines whether you owe more tax or are due a refund.

Claiming CIS tax refunds

Because CIS deductions do not account for expenses or personal allowances, many subcontractors are due a CIS tax refund.

You may be able to reclaim tax if you:

• Paid tax at 30% before registering
• Had multiple contractors deduct tax
• Paid for tools, travel or equipment
• Worked irregularly during the year

Refunds are claimed through your tax return.

Common CIS mistakes that cost money

Some common issues include:

• Not registering for CIS
• Poor record keeping
• Not claiming allowable expenses
• Missing CIS deductions on tax returns

Avoiding these mistakes helps ensure you are not overpaying tax.

How RIFT can help with CIS

CIS can feel complicated, especially when you are new to construction.

RIFT helps subcontractors:

• Register for CIS correctly
• Understand their deduction rate
• Complete accurate tax returns
• Claim back overpaid tax

If you are unsure whether you need a CIS card or think you may be overpaying, it is worth checking.

CIS card FAQs

Do I need a physical CIS card?

Not always. What matters is that you are registered and can be verified by contractors.

What happens if I work without a CIS card?

Contractors must deduct 30% tax, which often leads to overpayment.

Can I register for CIS after starting work?

Yes, but higher deductions may already have been taken.

Does a CIS card mean I do not need a tax return?

No. You must still complete a Self Assessment tax return.