Last updated: 14 October 2026
Do carpet fitters need to register for the Construction Industry Scheme?
Usually not. HMRC treats carpet fitting as outside the Construction Industry Scheme (CIS) in all circumstances, even when it’s part of a building specification. That’s been HMRC’s position since Statement of Practice 12/81. But if the same contract also includes construction work, such as laying laminate, screeding, fitting floor tiles or vinyl in a building under construction, all the payments under that contract fall within CIS. That includes the carpet part.
What’s in and out of CIS
| Work | CIS? |
| Fitting carpets or carpet tiles only | No |
| Fitting vinyl, linoleum or laminate in an occupied building, not under construction | No |
| Fitting floor coverings (other than carpet) as part of a new build or refurbishment | Yes |
| A single contract for laminate and carpet | Yes, the whole contract |
| Screeding or preparing subfloors | Yes |
| Supplying carpets without fitting | No |
Why the contract matters
HMRC looks at the contract as a whole. If any part of it relates to construction operations, every payment under it is caught, even if you issue separate invoices. So a fitter who mainly lays carpet but is asked to lay a laminate kitchen floor on a refurbishment job should register for CIS, or the contractor must deduct 30% tax from payments.
Registering as a subcontractor
If some of your work falls within CIS, register with HMRC as a subcontractor. You’ll usually need your UTR and National Insurance number. Contractors then verify you and deduct 20% from the labour part of each payment, or nothing if you have gross payment status. Unregistered subcontractors suffer 30%.
Example
Darren fits carpets for a property developer finishing a block of flats. Under one contract, he fits carpets in bedrooms and laminate in living areas, for £12,000 of labour. Because the contract is mixed, the developer must apply CIS to the whole £12,000. If Darren is registered, £2,400 is deducted. He can set this against his income tax and National Insurance in his Self Assessment return, and claim a refund if too much was taken.
Gross payment status
If your annual construction turnover (excluding VAT and materials) is at least £30,000 as a sole trader, and you meet the compliance tests, you can apply for gross payment status. This means no deductions are taken.
VAT and the reverse charge
If you’re VAT registered and your work falls within CIS, the domestic reverse charge may apply when you invoice a VAT-registered contractor who isn’t the end user. Carpet-only work outside CIS is invoiced with VAT in the normal way.
Records to keep
- Copies of every contract and job specification
- Invoices showing labour and materials separately
- CIS payment and deduction statements from contractors
Frequently asked questions
Is a carpet shop a contractor?
Not usually, if it only sells and fits carpet.
Do I need to register if only a few jobs are mixed?
Yes, to avoid the 30% rate on those jobs.
Can I claim back CIS deductions?
Yes, through your tax return.
What if a contractor deducts CIS on carpet-only work?
Ask them to check the contract; if no construction work is included, deductions shouldn’t be taken, but any that were can be credited on your return.
Related: whether a consultancy needs CIS and transferring gross payment status.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with CIS registration. See our CIS accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
