Does CIS apply to every subcontractor agreement?
No. CIS depends on the nature of the work and parties involved, so contracts should be drafted to reflect likely tax treatment.
CIS-aware drafting under UK tax rules
A subcontractor services agreement for businesses engaging subcontractors on commercial projects, covering scope, payment, liability, and compliance obligations including CIS considerations.
Construction and services subcontracting can engage CIS obligations and strict payment/liability risk allocation. A clear agreement reduces disputes about standards, deductions, and defects.
A subcontractor agreement is a contract under which one business performs part of another business’s contractual work.
Use it whenever appointing a subcontractor to clarify obligations, payment mechanics, and compliance requirements before mobilisation.
Last updated: March 2026
No. CIS depends on the nature of the work and parties involved, so contracts should be drafted to reflect likely tax treatment.
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1. SUBCONTRACT WORKS
The Subcontractor shall carry out and complete the Works described in Schedule 1 in accordance with this Agreement and any reasonable instructions from the Main Contractor.
2. PAYMENT
The Main Contractor shall pay the Subcontractor the sums set out in Schedule 2, subject to any deductions required under the Construction Industry Scheme.
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OBLIGATIONS
ADDITIONAL TERMS
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