There will be transitional rules for subcontractors currently within CIS. A subcontractor under the existing CIS may not need to register under the new CIS if they have:
However, if a subcontractor first starts working in the construction industry on a self-employed basis after 5 April 2007, or had a temporary registration card that has expired, they will need to register for the new CIS.
To register, a subcontractor will need to contact the Revenue by phone or over the internet and they will conduct identity checks. The rules for subcontractors to be paid gross are broadly equivalent to the current rules. There will be a business test, a turnover test and a compliance test similar to the existing regime.
Subcontractors not registered with the Revenue will suffer the higher rate deduction from any payments made to them by contractors.