<< CIS Explained

The Construction Industry Scheme (CIS) is a HMRC directive which sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry.


The scheme applies mainly to contractors and subcontractors in mainstream construction work, however businesses or organisations whose core activity is not construction but have a high annual spend on construction may also count as contractors and fall under the scheme.


As you are engaged as a self-employed operative with Lochlyn Torey it is important to confirm that you are NOT under any supervision, direction or control in your current assignment. As part of our due-diligence process, Lochlyn Torey conducts regular assessments designed to identify any potential SDC that would conflict with your self-employed status. If you are, for whatever reason, subject to supervision direction or control as to how you do your job by the client then your payment needs to be treated in a different way, and subject to PAYE tax and National Insurance contributions.



Supervision is someone overseeing an operative’s work, to ensure that it’s being done correctly to the required standard. Supervision can also involve helping operatives, where appropriate, in order to develop their general skills and knowledge.

Direction is someone making operatives do their work in a certain way by providing instructions, guidance or advice as to how the work must be done.

Control is someone asserting a particular way, or order that work must be completed in. It could also include someone having the power to move you from one job to another.