The Construction Industry Scheme (CIS) is a set of special rules for handling payments for construction work that contractors make to subcontractors. The scheme covers all ‘construction operations’ – construction work – carried out in the UK, as well as some other related work.
If your business is involved with construction operations then it might operate as a contractor or as a subcontractor – or as both. The terms construction operations, contractor and subcontractor have special meanings under CIS and they’re defined in the rules of the scheme.