The Construction Industry Scheme (CIS) for Overseas Businesses
If your business is based overseas and you are carrying out work in the UK—whether it’s installing machinery, fitting out a building, laying cables, or undertaking large-scale civil engineering—you may be within the scope of the Construction Industry Scheme (CIS).
CIS is a UK tax regime with strict rules and heavy penalties for non-compliance. Many overseas businesses do not consider themselves to be part of the UK construction sector—but still fall within the rules.
At Türner & Co, we help businesses understand their CIS obligations and handle all registration and reporting requirements. Our aim is simple: make CIS compliance easy, so you can focus on completing your UK project.
What is the Construction Industry Scheme (CIS)?
What Types of Work Fall Within CIS?
CIS applies to a wide range of work carried out in the UK, including:
- Construction, renovation or extension of buildings and structures
- Civil engineering works (e.g. roads, tunnels, bridges, industrial plant foundations)
- Installation of systems such as:
- Heating, lighting, air conditioning, and ventilation
- Water supply, drainage, fire protection
- Electrical and power supply infrastructure
- Internal cleaning during construction
- Painting and decorating (inside and out)
Important: You do not need to be a traditional building contractor to be within scope. Many overseas companies become subject to CIS when installing equipment or subcontracting local labour.
CIS Contractors and Subcontractors – What’s the Difference?
- CIS Contractor: Any business that pays another party to carry out construction-related work in the UK. This includes overseas companies that engage UK subcontractors or other third-party labour.
- CIS Subcontractor: Any business that is being paid to carry out work within the scope of CIS. This includes overseas companies performing work in the UK—whether under direct contract with a UK client or as part of a wider supply chain.
Many overseas businesses are both: they act as subcontractor to the main client and then subcontract part of the work.
Why CIS Compliance Matters
Failure to comply with CIS can result in:
- 30% withholding tax on payments made to you
- Penalties for late or incorrect filings
- Loss of Gross Payment Status (GPS) if compliance is not maintained
- Delays in reclaiming overpaid taxes
- Reputational damage with HMRC and your UK partners
How Türner & Co Can Help
We work with overseas businesses to manage every aspect of CIS, including:
- Registering your business as a CIS Contractor, Subcontractor, or both
- Verifying UK subcontractors and ensuring correct deductions
- Applying for Gross Payment Status so that no tax is withheld from payments to you
- Recovering CIS deductions through UK tax filings
- Representing you in the event of HMRC compliance checks
- Helping you understand how CIS interacts with VAT, payroll, and corporation tax
If you are new to the UK market—or already active and unsure whether you are meeting your CIS obligations—speak to our specialist team.
FAQs
Yes, if your business is carrying out construction-related work in the UK—or paying others to do so—you may need to register as a CIS contractor or subcontractor, even if you’re based outside the UK.
You may face 30% tax deductions on payments received, financial penalties for non-compliance, and difficulties reclaiming taxes from HMRC. Timely registration avoids these issues.
CIS applies to a wide range of installation and civil works—not just building construction. Many businesses fall into scope when installing machinery, fitting out premises, or subcontracting site work.
Gross Payment Status allows registered subcontractors to be paid in full without deductions. We can assess if you qualify and handle the application process for you.
Many international businesses act in both roles. You’ll need to meet the obligations of both a CIS contractor (deducting and reporting tax) and subcontractor (ensuring deductions are correct or applying for GPS).
CIS deductions are offset against UK tax liabilities. If you’re entitled to a refund, we help you claim it through your UK tax filings.
You need to keep records of all payments, deductions, subcontractor verifications, and submitted CIS returns. We can help you set up the correct processes.
Registration typically takes 2–8 weeks, depending on your business structure and responsiveness to HMRC’s information requests.
Yes. We act as your UK tax agent, managing correspondence with HMRC and ensuring your obligations under CIS are fully met.
Contact Our Experts
Don’t let CIS disrupt your project. Let Türner & Co take care of your compliance while you focus on delivery.
Kate McDermott
Director
Head of Indirect Tax & HR
Martin Briggs
Senior Manager
Accounting & CIS