Tax Certificates
If you are self-employed and working in the construction industry, you must have a Subcontractors Tax Certificate (CIS 6) or a Registration Card (CIS 4). This is essential for payment!
A tax certificate allows you to receive payments for construction work without your contractor making deductions for tax or Class 4 National Insurance contributions.(NICs).
You complete a tax return once a year and pay tax and NICs directly to Inland Revenue when they become due.
Not everyone is entitled to receive a tax certificate.
To be issued with one you will have to meet certain qualifying conditions.
For further information please read leaflet IR40 (CIS) ‘Construction Industry Scheme. Conditions for getting a Subcontractor’s Tax Certificate’.
Only a minority of subcontractors will qualify for Tax Certificates entitling them to gross payment.
The vast majority who apply and attend identity checks will get Registration Cards.
When issued with a Registration Card you will have to present it to the contractor before you can get paid.
If you do not have a Registration Card, the contractor cannot pay you.
There are two types of Registration Card.
A number of informative booklets are readily available including,
These information leaflets can be obtained by contacting:
Inland Revenue,
Beaufort House,
31 Wellington Place,
Belfast BT1 6BH
Phone: 028 9053 2300
Web site: www.inlandrevenue.gov.uk/cis/index.htm
Suppliers will not be awarded a contract without the appropriate certificate!