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If you’re an umbrella company contractor working in construction, then it’s likely you’ll need to register for the Construction Industry Scheme (CIS). Here, we take a look at CIS and how you go about registering as an umbrella company contractor.

What is the Construction Industry Scheme?

CIS is a tax deduction scheme – it is sometimes mistaken for being an additional tax, but it’s more like an upfront tax system.

With HMRC fearing that dishonest subcontractors may not declare the money earned from working for bigger companies, the scheme is designed to reduce levels of fraud and tax evasion.

It’s also used to help certain subcontractors spread their tax liabilities over the financial year due to the deductions counting as advanced payments toward their tax and National Insurance (NI).

For more information on CIS, take a look at our Construction Industry Scheme page.

Do I need to register for CIS?

Both contractors and subcontractors are affected by CIS, with each having different responsibilities.

A contractor:

  • pays subcontractors for construction work.

A subcontractor:

  • Carries out construction work for a contractor.

An umbrella company contractor is considered a subcontractor.

A contractor is required to register for the scheme, whereas a subcontractor doesn’t have to register, but in not doing so, deductions are still taken from their payments, but at a higher rate.

As an umbrella company doesn’t have any involvement with the CIS process, the umbrella contractor will need to register for the scheme themselves.

With Contractor Umbrella, once you’ve completed our sign-up form, you’ll need to provide your CIS reference number; if you’ve not yet registered then we will send you a link taking you to the HMRC website where you can do so.

It’s worth noting that there will be certain situations where a self-employed CIS worker may have to contract through an umbrella company due to the type of assignment and work they carry out, for example, if they are affected by SDC (Supervision, Direction or Control) rules.

We hope you have found this page useful. If you have any further questions on CIS or anything else, our team of experts are available to answer any queries, so give us a call on 01206 591 000 or email

Why Choose Contractor Umbrella?

Contractor Umbrella is the hassle-free, straight talking umbrella company that provides umbrella employment for UK based contractors and freelancers. Independently voted as the best umbrella company by the readers of Contractor UK.

As one of the most trusted umbrella companies in the UK, we guarantee our employees peace of mind, absolute compliance and complete security. We are one of the longest standing and most respected umbrella companies in the UK.

If you’d like to find out more, call us on 01206 591 000 or request a call back by completing our online form.

Benefits of working through Contractor Umbrella;

  • Fast and easy registration –  be ready to work in 24 hours, simply register online and we’ll take care of the rest.
  • Calculate your take home pay – use our online calculator to find out how much you could be taking home through Contractor Umbrella.
  • Same day payments – We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.
  • Our Service Guarantee – is our guarantee that you will be looked after at every step of the way.
  • Flexible Limited Company accountancy – when you sign up to our sister company Dolan Accountancy, you can transfer to Contractor Umbrella when umbrella employment better suits or your assignment sits inside IR35.
  • Employee Benefits at Contractor Umbrella there are many benefits available to you as our employee including Childcare Vouchers, our Employee Rewards Scheme, Group Pension Scheme, Foreign Currency Exchange, Contractor Accommodation, Contractor Mortgages and much more.
  • Expert Contractor Support Team – Every employee of Contractor Umbrella has access to our expert Contractor Support Team who are available to deal with any queries that you may have. You can get in touch with the Contractor Support Team, through the online chat, by email or by telephone.
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