Q. I have recently started a carpet fitting business but I’m not sure what the rules on the Construction Industry Scheme (CIS) mean for me? I’m the only employee at the moment. Do I have to register?
A: It is mandatory for constructors to register for the CIS. However, there are a number of exceptions. You will not need to register if you only do certain jobs. And, usefully for you in your case, carpet fitting is one example.
Carpet fitting would come under the category of “finishing ” under the scheme. That is work which ‘renders complete’ or ‘finishes off’ any construction operations, according to the Government’s website. But HMRC says of carpet fitting that it is “the only “.
Statement of Practice 12 (1981) “provides that carpet fitting (but no other floor covering) is regarded as excluded from the scheme. However, if carpet fitting is part of a mixed contract, then all the contract comes within the scheme.”
Other examples of exceptions in the CIS where you do not have to register if you only do certain jobs include:
- architecture and surveying
- scaffolding hire (with no labour)
- making materials used in construction including plant and machinery
- delivering materials
- work on construction sites that’s clearly not construction – for example, running a canteen
