Construction in the UK: CIS, taxes and your rights
Half of every site works "for themselves" under CIS. The rules are simple, but not knowing them costs money: without registration 30% is deducted instead of 20%, and most registered workers can claim part of their tax back every year — and don't. Important: self-employment is only allowed with status. A seasonal visa and Permission to Work do NOT give it.
Who can
Self-employment in construction is legal only if your status allows it:
- refugee status / humanitarian protection / leave to remain — yes.
- Seasonal visa — no (work for your sponsor only).
- Permission to Work — no (employed jobs from the list only).
- Waiting for asylum without PtW — no.
If you worked without the right — see "Work dispute"
How CIS works (Construction Industry Scheme)
The contractor deducts part of your pay and passes it to HMRC as an advance on your taxes:
- You are registered with CIS → they deduct 20%.
- Not registered → 30%. Registration is free — don't gift HMRC an extra 10%.
- Experienced with turnover — gross status: 0% deductions, you pay taxes yourself.
Three steps to start
- 1
UTR — the self-employed tax number: register for Self Assessment on gov.uk (free, letter with the number in ~2 weeks).
- 2
CIS registration as a subcontractor (free, online or 0300 200 3210).
- 3
CSCS card — the pass for most sites: a health-and-safety test (CITB) + the card. Preparation materials exist in Russian.
Tax return and refund
Once a year — Self Assessment (for the tax year to 5 April, online deadline 31 January).
Why most people on CIS get a refund: 20% was deducted from your whole income, but the tax is calculated after expenses (tools, workwear, transport to sites, phone) and the personal allowance. The overpayment comes back after the return.
Careful with "refund agents": they take 20–30% of your refund for what you can do for free (or an accountant for a fixed £150–250).
False self-employment
"You're self-employed" — but they tell you when to come, give you tools, pay by the hour, and there is one client? Legally you may be a worker: then you are owed the £12.71 minimum wage, 28 days of holiday pay, and the dispute goes through ACAS. The "self-employed" paper decides nothing by itself — reality is what counts. Free check: Work Rights Centre.
Safety and injuries
- PPE (helmet, boots, vest) must be provided by the site/contractor — free.
- You have the right to refuse dangerous work — that is not a reason not to pay you.
- Injury: a doctor straight away + an entry in the accident book. Compensation is possible even for the self-employed (the site's public liability) — injury lawyers work no win no fee.
Not paid for the job
Invoice, letter before claim, money claim — step by step in the "Self-employed" section of the dispute page — button below.
Frequently asked questions
I am waiting for an asylum decision. Can I do construction as self-employed?
No. Self-employment requires status. PtW and a seasonal visa do not give it. Working without the right is a risk: /en/work/spor#bez-razresheniya
What pays better — CIS or being employed by a firm?
It differs: employment gives holiday pay, sick pay, pension; CIS gives a higher rate but all risks are yours. Compare the whole year, not the hourly rate.
I missed the tax return deadline. What happens?
A £100 fine immediately and growing after that. File as soon as you can — and set a January reminder for the future.
Can I take the CSCS test in Russian?
The CITB test is available with a voice-over/interpreter in several languages — check when booking; Russian preparation materials exist.