CIS gross payment status
With gross payment status, contractors pay you in full. Nothing is held back for HMRC.
What it means
Contractors pay you the whole amount, with no CIS deduction. You still pay your own tax: on your Self Assessment return if you are a sole trader or partner, or your Corporation Tax return if you are a limited company.
When a contractor verifies you, HMRC tells them to take off 0%.
The tests
- Business: your business does construction work, or supplies labour for it, in the UK.
- Bank account: your business is run through a bank account.
- Compliance: you have paid your tax and National Insurance on time in the past. Since 6 April 2024 HMRC also looks at your VAT.
- Turnover: enough construction turnover in the last 12 months (below).
The turnover test
Count the last 12 months. Leave out VAT and the cost of materials.
| You are | Turnover you need |
|---|---|
| Sole trader | £30,000 |
| Partnership | £30,000 for each partner, or at least £100,000 for the whole partnership |
| Limited company | £30,000 for each director, or at least £100,000 for the whole company |
| Company controlled by 5 people or fewer | £30,000 for each of them |
How to apply
Use HMRC's online form, or the postal form. There is a different form for a sole trader, a partnership and a limited company. Applying also registers you for CIS if you are not registered yet.
A sole trader needs:
- National Insurance number and UTR.
- VAT number, if you have one.
- Your turnover for the last 12 months, with evidence such as bank statements, payment and deduction statements and invoices.
- Bank account details, and your PAYE reference if you have one.
The online form cannot be saved part way, so gather everything first. Giving false information can lead to a fine, for you and for anyone who helps.
The yearly review
- HMRC reviews your business every year. You must be on time with tax returns and payments. A small amount of lateness is allowed.
- If HMRC has agreed more time to pay, that does not count against you.
- For a limited company, HMRC reviews the company, not each director.
- If you are about to fail, HMRC writes first. You can reply with your reasons.
- If HMRC still removes the status, it gives 90 days' notice. You have 30 days from the letter to appeal.
- After a cancellation, you must wait a year before you apply again.
Since 6 April 2024 HMRC can also cancel the status straight away in more cases, including where it has reasonable grounds to suspect VAT fraud.
We checked this against the sources below on 31 Oct 2026. Rules change. You stay responsible for your own tax, so check anything unusual with your accountant or on gov.uk.
Sources
- GOV.UK, "What you must do as a CIS subcontractor: how to get gross payment status" (gov.uk/what-you-must-do-as-a-cis-subcontractor/gross-payment-status)
- GOV.UK, "What you must do as a CIS subcontractor: annual review" (gov.uk/what-you-must-do-as-a-cis-subcontractor/annual-review)
- HMRC, "Register as a sole trader subcontractor or apply for gross payment status" (gov.uk/guidance/register-as-a-sole-trader-subcontractor-or-apply-for-gross-payment-status)
- HMRC, "Construction Industry Scheme reform from 6 April 2024" (gov.uk/government/publications/construction-industry-scheme-reform-from-6-april-2024)
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