How Do I Apply For A UTR Number for CIS?

The Construction Industry Scheme (CIS) is a specific form of self-employment exclusive to the construction industry.

It differs to those who are paid self-employed on a gross basis - those registered on the scheme pay 20% tax at source, rather than being paid gross with no deductions. This is passed over to HMRC on behalf of the worker – so in our case, Clipper Contracting deduct and pass this over to HMRC for our CIS workers. This is called ‘net payment status’ (also known as ‘payment under deduction’). It’s an extremely popular method of payment for those operating in construction.

If you wish to register for CIS, you’ll need to arrange this with HMRC. Here are some simple steps to help you apply for a UTR (Unique Tax Reference) number.

1. Visit this website - https://www.gov.uk/register-for-self-assessment and create a Government Gateway account (if you don’t already have one).

2. Register for Self Assessment and choose ‘working as a subcontractor’ when prompted. You’ll be registered for Self Assessment and CIS at the same time.

3. Provide Information: Enter information such as your personal details, National Insurance Number, details of the work you do and the date you started your self-employment.

4. Submit Your Application: Review and submit your application.

5. Receive Your UTR: HMRC will send your UTR number by post within 10 days, in addition to an activation code.

If you already have a UTR number but wish to register as CIS, you will need to ensure you’ve done the following;

1. On the HMRC website, select the option to register for CIS using your Government Gateway User ID.

2. Choose your CIS payment status (net, otherwise known as payment under deduction).

If you do not register for the scheme, contractors must deduct 30% from your payments instead, so please be aware of this.

Of course, if you prefer to speak to someone instead, there is a CIS helpline on 0300 200 3210.

Self-assessment Tax Returns with Gorilla Accounting

A reminder that as a self-employed worker, you will need to file a self-assessment tax return every year. These can be overwhelming and an accountant can not only simplify this process but will also ensure you are maximising your income.

​We understand that this is an additional expenses, so we have secured a 10% discount with Gorilla Accounting for anyone that uses this link: https://gorillaaccounting.com/personal-tax-questionnaire-clipper/