The UK construction industry is one of the most regulated sectors when it comes to tax compliance. One of the key frameworks ensuring proper taxation is the Construction Industry Scheme (CIS), established by HM Revenue & Customs (HMRC). While the rules may be relatively straightforward for UK-based workers, things become more complex when foreign or non-resident contractors are involved.

Whether you’re an overseas company managing a UK-based construction project or an individual subcontractor travelling into the country for contract work, understanding how CIS tax deductions apply is essential. Failure to comply with UK tax regulations can result in significant financial and reputational consequences—not to mention the risk of double taxation.

Under the CIS, contractors are legally required to deduct money from a subcontractor’s payments and pass it to HMRC. These deductions count as advance payments towards the subcontractor’s tax and National Insurance. However, for non-resident contractors, these rules present a unique set of challenges, especially when trying to determine tax obligations, reclaim deductions, or manage UK-sourced income while based abroad.

At LT Accounting, we specialise in providing expert support for contractors and subcontractors navigating the CIS—particularly those operating cross-border. With years of experience in UK tax law and international compliance, we guide our clients through everything from CIS registration and HMRC submissions to double taxation relief and end-of-year tax reporting.

This guide will explore in detail:

What CIS is and how it applies to construction workers

Who qualifies as a non-resident contractor

How CIS deductions are calculated and applied to foreign entities

Registration requirements and compliance considerations

The role of Double Taxation Agreements (DTAs)

Practical challenges and how to overcome them

With the construction sector’s globalised nature, more businesses and workers are engaging in UK-based work while residing or being registered elsewhere. This article is written specifically for them—with practical insight, regulatory clarity, and clear guidance.

If you are a non-resident contractor or operate a foreign business taking on construction contracts in the UK, this article will help you understand how CIS affects your operations—and how LT Accounting can make the process far smoother.

Understanding the Construction Industry Scheme (CIS)

The Construction Industry Scheme (CIS) is a UK tax deduction scheme designed to ensure proper tax collection from subcontractors working in the construction sector. Administered by HM Revenue & Customs (HMRC), the CIS applies to payments made by contractors to subcontractors for construction work. It’s a pivotal system for ensuring that income earned within the UK construction industry is taxed appropriately—particularly in an industry that has historically faced challenges with under-reporting and tax evasion.

Who Does CIS Apply To?

CIS primarily involves two parties:

  • Contractors: Businesses or individuals who pay subcontractors for construction work. Contractors may also be property developers or companies not traditionally in the construction sector but spending above a certain threshold on construction projects.

  • Subcontractors: Individuals or businesses that carry out construction work for contractors.

If you’re operating in the UK construction industry, either as a domestic or overseas entity, and you’re paying others to do construction work, you may fall under the definition of a contractor under CIS.

What Types of Work Fall Under CIS?

The scheme applies to a wide range of construction activities, including:

  • Site preparation (e.g. laying foundations, demolition)

  • Building and civil engineering works

  • Installation of systems for heating, lighting, power, water, and ventilation

  • Alterations, repairs, and decorating

Certain professions—such as architecture, surveying, and hiring scaffolding (without labour)—are excluded from the scheme, as are materials-only payments.

How Do CIS Deductions Work?

When a contractor makes a payment to a subcontractor for work covered by CIS, they must deduct a percentage from the labour portion of the payment and send it directly to HMRC. This deduction acts as an advance payment towards the subcontractor’s Income Tax and National Insurance.

The standard CIS deduction rates are:

  • 20% – for subcontractors who are registered under CIS

  • 30% – for those who are not registered

  • 0% (Gross Payment Status) – for registered subcontractors who qualify and apply for gross payment status, meaning they receive payments in full without deductions

Contractors must verify the registration status of each subcontractor with HMRC before applying the appropriate rate.

Why Was CIS Introduced?

The scheme was introduced to tackle tax evasion in the construction industry. In an environment with many temporary and self-employed workers, HMRC needed a mechanism to ensure tax compliance and reduce the loss of revenue through undeclared income. CIS acts as a withholding tax mechanism that secures tax collection at source and brings more accountability into the sector.

Monthly Responsibilities for Contractors

Contractors under CIS are responsible for:

  • Registering with HMRC as a contractor

  • Verifying subcontractors’ details and CIS registration status

  • Deducting the correct amount from payments

  • Submitting monthly CIS returns to HMRC

  • Providing monthly payment and deduction statements to subcontractors

  • Paying the deducted tax to HMRC by the 22nd of each month (if paid electronically)

Failure to comply with CIS requirements can result in penalties and interest charges from HMRC.

Who Is Considered a Non-Resident Contractor?

In the context of the UK tax system, non-resident contractors are individuals or businesses that carry out construction work in the UK but are not tax resident in the UK. This distinction is critical because even if a contractor is based overseas, they may still be subject to UK tax rules, including CIS deductions, if they’re earning income from UK-based construction activities.

Defining Non-Residency for Tax Purposes

A non-resident for UK tax purposes is typically someone who:

  • Does not reside in the UK, based on the Statutory Residence Test (SRT)

  • Does not have their main place of business or incorporation in the UK

  • Does not meet the threshold for UK tax residency in a given tax year

The SRT considers factors such as the number of days spent in the UK, ties to the UK (e.g. family, property, work), and previous residency history. For businesses, non-resident companies are typically those incorporated outside the UK and managed and controlled from abroad.

However, non-residency does not exempt a person or company from UK tax obligations if they carry out construction operations within the UK. This is where CIS becomes applicable.

Examples of Non-Resident Contractors

To clarify, let’s consider a few practical examples:

  • A construction firm based in Ireland wins a contract to complete a building project in Manchester. Even though the company is not UK-based, the work is being carried out in the UK—so CIS applies.

  • A self-employed builder from Poland comes to the UK for six months to take on subcontract work. Even if they remain non-resident by the SRT, their income from UK construction work will be subject to CIS deductions.

  • An overseas engineering consultancy sends its staff to supervise a UK construction site. Depending on whether their work is classed as construction activity under CIS, they may be required to register and comply with the scheme.

Permanent Establishment and UK Tax Exposure

Another concept relevant to non-resident businesses is Permanent Establishment (PE). This refers to having a fixed place of business in the UK—such as an office, branch, or site—from which a business wholly or partly carries out operations. If HMRC deems a PE exists, the foreign company may be liable for UK Corporation Tax on profits attributable to that establishment.

Even without a PE, income earned from UK construction activity is generally subject to CIS rules, meaning tax must be deducted at source. This includes both direct construction work and services closely linked to it.

Implications for CIS Compliance

For non-resident contractors, this means:

  • They must register under the CIS if they want to avoid the higher 30% deduction rate

  • They are still subject to UK tax on income from UK construction projects, even if they pay tax in their home country

  • They may need to claim tax relief in their home country or from HMRC to avoid double taxation

These rules often catch out non-resident contractors who assume they’re exempt from UK tax simply because they are not based in the country.

How CIS Tax Deductions Apply to Non-Resident Contractors

Understanding how the Construction Industry Scheme (CIS) applies to non-resident contractors is crucial for foreign businesses and individuals undertaking construction work in the UK. While the scheme’s basic principles remain the same regardless of residency, the administrative and financial implications can be significantly more complex for overseas entities.

UK-Sourced Construction Income and CIS Liability

Even if a contractor is not a UK resident, if they earn UK-sourced income through construction work in the UK, that income is subject to CIS rules. This includes payments made to:

  • Foreign individuals (e.g. self-employed tradespeople)

  • Overseas companies supplying labour or construction services in the UK

  • Businesses temporarily operating in the UK through site-specific contracts

HMRC’s position is clear: if the work is performed physically within the UK and falls under CIS-defined construction operations, the income derived from that work is taxable and subject to CIS deductions.

CIS Registration for Non-Resident Subcontractors

Non-resident subcontractors should register with HMRC under the CIS to avoid the default 30% deduction rate. Once registered, they’ll usually be subject to the standard 20% deduction—provided they meet HMRC’s compliance requirements.

Alternatively, if the subcontractor applies for and is granted gross payment status, they can receive payments in full with no deductions. However, qualifying for gross status requires demonstrating that the business:

  • Has a UK bank account

  • Maintains accurate tax records

  • Meets turnover thresholds and compliance history

  • Has a UK Unique Taxpayer Reference (UTR)

While this is more challenging for non-residents, LT Accounting can help with structured planning to meet HMRC’s eligibility conditions where possible.

Treatment of Non-Resident Companies Operating in the UK

When foreign companies undertake construction work in the UK, they may:

  • Choose to register a UK branch or subsidiary

  • Operate temporarily via a contractual presence or local subcontract

Regardless of the structure, payments received for work performed on UK soil will attract CIS deductions, unless gross payment status is approved.

Additionally, if a UK contractor pays a foreign subcontractor, they are still legally obligated to apply the appropriate CIS deduction. If the subcontractor is not registered, the contractor must deduct 30% and submit the withheld amount to HMRC. This makes it essential for foreign entities to communicate their CIS registration status early in contract negotiations.

Real-World Example: How It Works

Example Scenario:

An Italian construction firm, BuildEuropa S.r.l., wins a contract to provide concrete pouring services for a large London development. They send a team to the UK for three months to carry out the work. The UK-based contractor, Urban Developments Ltd, agrees to pay £100,000 for the job.

If BuildEuropa does not register under CIS, Urban Developments must deduct 30% (£30,000) and remit it to HMRC, paying BuildEuropa only £70,000. That £30,000 is effectively held as a tax prepayment on behalf of the subcontractor.

If BuildEuropa had registered under CIS and received a UTR, the deduction would have been 20% (£20,000), improving their cash flow by £10,000.

This deduction is not a final tax but a payment on account. BuildEuropa can later file a UK tax return (or reclaim the deduction under double taxation rules, which we’ll cover in the next section) to potentially recover some or all of it, depending on total liabilities.

Key Considerations for Non-Residents

  • Cash Flow Impact: Deductions can severely affect the cash flow of non-resident contractors who may not ultimately owe that level of UK tax.

  • Administrative Burden: Dealing with UK tax filings and navigating HMRC’s systems can be challenging without local expertise.

  • Double Taxation: Many non-residents are also taxed in their home country and must navigate international agreements to avoid paying twice.

CIS Registration Requirements for Non-Residents

For non-resident contractors and subcontractors operating in the UK, registering under the Construction Industry Scheme (CIS) is a vital step—not only to ensure compliance with HMRC regulations, but also to avoid the higher 30% tax deduction that applies to unregistered subcontractors. While UK-based contractors can typically register with relative ease, the process for non-residents involves additional layers of complexity due to documentation, communication with HMRC, and lack of UK tax infrastructure.

This section outlines the steps required for CIS registration as a non-resident and how LT Accounting supports international clients through this process.

Who Needs to Register?

There are two main categories of registration:

  1. Contractors – Businesses that pay subcontractors for construction work in the UK. This includes foreign businesses taking on significant UK construction projects and paying others to carry out the work.

  2. Subcontractors – Individuals or businesses that perform construction work for contractors and receive payment in return. Most non-resident contractors fall into this category.

In many cases, a non-resident company may be both a contractor and a subcontractor, depending on its role in the construction supply chain.

Steps to Register Under CIS (for Non-Residents)

The basic process includes the following:

1. Obtain a UK Unique Taxpayer Reference (UTR)

  • Before registering under CIS, the business or individual must first register with HMRC for self-assessment (individuals) or Corporation Tax (companies).

  • This registration will result in the issuance of a UTR number, which is mandatory for CIS registration.

Note: Without a UTR, subcontractors cannot be verified in HMRC’s system, and contractors will be forced to deduct the full 30%.

2. Register for CIS

  • Once the UTR is obtained, the next step is to formally register as a subcontractor (or contractor, if applicable).

  • This can be done:

    • Online, using HMRC’s Government Gateway portal (may require a UK address)

    • By post, using specific forms such as the CIS301 for individuals or the CIS305 for companies

    • Via an authorised UK tax agent, like LT Accounting, who can handle the process on your behalf

3. Provide the Required Identification and Documentation

Depending on the structure (individual vs company), HMRC will request different documentation, including:

  • Passport or national ID (for individuals)

  • Company registration details (for non-UK companies)

  • International tax identification number (TIN) or equivalent

  • Proof of UK business activity (e.g. contract, invoice, or letter of engagement)

4. Apply for Gross Payment Status (Optional)

Non-resident subcontractors can also apply for gross payment status, allowing them to receive payments without any deductions. However, qualifying is difficult for non-residents unless they can prove:

  • The business operates a UK bank account

  • UK tax compliance history (or overseas equivalent)

  • Annual turnover thresholds (£30,000 for individuals or £100,000 for companies)

  • A track record of timely tax returns and payments

Challenges Faced by Non-Residents

Non-resident applicants often face several barriers:

  • Language and documentation issues

  • Unfamiliarity with UK tax systems and deadlines

  • Delays due to international verification

  • Difficulty opening UK bank accounts, which is often needed for gross payment status

These challenges can delay registration and impact payment terms with contractors.

How LT Accounting Supports the Process

At LT Accounting, we offer tailored support for non-resident contractors by:

  • Registering you for UTR and CIS on your behalf

  • Handling all HMRC communications

  • Advising on gross payment eligibility and preparing the application

  • Ensuring proper documentation is in place

  • Providing UK-based correspondence to meet HMRC’s requirements

This streamlined service not only accelerates the registration process but also ensures that your UK construction income is taxed appropriately—and without unnecessary deductions.

Double Taxation Agreements (DTAs) and Relief Options

For non-resident contractors engaged in UK construction projects, understanding the interplay between the UK’s Construction Industry Scheme (CIS) and Double Taxation Agreements (DTAs) is crucial. DTAs are bilateral treaties designed to prevent the same income from being taxed twice by two different jurisdictions. They provide mechanisms for tax relief, ensuring that individuals and businesses are not unfairly burdened by double taxation.

Understanding Double Taxation Agreements (DTAs)

A Double Taxation Agreement is a treaty between two countries that delineates the taxation rights of each concerning specific income types. The primary objectives of DTAs are to:

  • Avoid Double Taxation: Ensure income earned in one country isn’t taxed again in another.

  • Prevent Tax Evasion: Facilitate information exchange between tax authorities to combat tax avoidance.

  • Provide Certainty: Clarify tax obligations for individuals and businesses operating cross-border.

The UK has an extensive network of DTAs with numerous countries, each specifying how different income types—such as business profits, dividends, interest, and royalties—are taxed.

Application of DTAs to Non-Resident Contractors under CIS

For non-resident contractors, DTAs can influence how CIS deductions are treated:

  • Permanent Establishment (PE): Many DTAs stipulate that business profits are taxable in the country where the business operates, but only if it has a permanent establishment there. A PE typically includes fixed places of business like offices or construction sites that last beyond a specified duration (commonly 6 to 12 months). If a non-resident contractor’s UK activities constitute a PE, the UK gains taxation rights over the profits attributable to that PE.

  • Exemption from UK Tax: If a non-resident contractor doesn’t have a PE in the UK, the DTA might exempt their business profits from UK tax. However, CIS deductions may still apply at the point of payment. To reclaim these deductions, the contractor must demonstrate their exemption under the relevant DTA.

Claiming Relief from Double Taxation

Non-resident contractors can seek relief from double taxation through:

  1. Exemption at Source: Before commencing work, contractors can apply to HMRC for exemption from UK tax under the applicable DTA. If granted, this can prevent CIS deductions from being made. However, this process requires thorough documentation and approval from HMRC.

  2. Tax Credits: If CIS deductions are made, the contractor can claim a foreign tax credit in their home country for the UK tax paid, reducing their domestic tax liability accordingly. The exact mechanism depends on the home country’s tax laws and its DTA with the UK.

  3. Direct Repayment Claims: Contractors can file a Self Assessment tax return with HMRC to claim a repayment of CIS deductions if they believe they’re exempt from UK tax under a DTA. This process involves:

    • Demonstrating non-residence and lack of a PE in the UK.

    • Providing a Certificate of Residence from their home country’s tax authority.

    • Submitting detailed accounts and records of the UK activities.

    Before repayment, HMRC will verify:

    • The subcontractor’s exemption from UK taxes.

    • Any outstanding PAYE/CIS liabilities in their role as a contractor or employer.

    • The accuracy of CIS deductions as per HMRC’s records.

Practical Steps for Non-Resident Contractors

To effectively manage CIS obligations and DTA reliefs:

  • Early Consultation: Engage with tax professionals familiar with both UK tax law and the contractor’s home country’s regulations. This proactive approach ensures compliance and optimizes tax positions.

  • Documentation: Maintain meticulous records, including contracts, payment receipts, and correspondence with HMRC. Proper documentation is vital for claiming reliefs and addressing any disputes.

  • Timely Applications: Whether applying for gross payment status under CIS or seeking DTA exemptions, timely submissions are crucial. Delays can lead to unnecessary tax deductions and cash flow challenges.

  • Stay Informed: Tax laws and treaty provisions can evolve. Regularly updating knowledge ensures ongoing compliance and the ability to capitalize on available reliefs.

How LT Accounting Can Assist

Navigating the complexities of CIS and DTAs requires specialized expertise. LT Accounting offers:

  • Personalized Consultations: Tailored advice considering the contractor’s specific circumstances and the nuances of the relevant DTA.

  • Compliance Services: Assistance with CIS registration, applications for gross payment status, and preparation of necessary documentation.

  • Liaison with HMRC: Acting as an intermediary to resolve issues, submit claims, and ensure timely communication.

  • Cross-Border Tax Planning: Strategies to minimize tax liabilities across jurisdictions, ensuring adherence to both UK laws and the contractor’s home country regulations.

By partnering with LT Accounting, non-resident contractors can focus on their core operations, confident that their tax affairs are in expert hands.

Practical Challenges Faced by Non-Resident Contractors

Operating in a foreign tax jurisdiction is never straightforward, and for non-resident contractors working in the UK construction sector, the Construction Industry Scheme (CIS) introduces layers of administrative, legal, and financial complexity. Despite best intentions, many international contractors face significant practical challenges that can disrupt projects, delay payments, or lead to unexpected tax liabilities.

This section highlights the most common issues and how to proactively address them—with support from professionals like LT Accounting.

1. Language and Communication Barriers

HMRC guidance, forms, and correspondence are primarily issued in English, using UK-specific tax terminology. For contractors whose first language is not English, this creates difficulties in:

  • Understanding CIS rules and HMRC communications

  • Filling in forms correctly

  • Responding to queries or requests for further information

  • Navigating Government Gateway services online

Even minor misunderstandings can delay registration, lead to incorrect deduction rates, or trigger penalties.

Solution: Partnering with a UK-based accountant familiar with international clients—like LT Accounting—can bridge the language gap. We ensure that all documentation is completed accurately, interpret HMRC letters, and provide simple explanations of complex tax issues.

2. Delays in Payment Due to Incorrect CIS Handling

Many non-resident subcontractors experience payment delays because:

  • The contractor has not verified their CIS registration correctly

  • The wrong deduction rate (30% instead of 20%) is applied

  • HMRC disputes the CIS status or queries a UTR

  • Gross payment status is assumed but not approved

These delays can disrupt cash flow and affect ongoing work, especially for contractors relying on milestone payments.

Solution: Ensuring that your CIS registration is completed well before the project begins is essential. LT Accounting can verify your details, manage contractor-subcontractor communications, and help resolve disputes promptly.

3. Opening a UK Bank Account

Having a UK business bank account is often a requirement for:

  • Applying for gross payment status

  • Demonstrating a presence for UK tax compliance

  • Simplifying cross-border payments and conversions

However, opening a UK business account can be a significant hurdle for non-resident companies due to:

  • Know Your Customer (KYC) checks

  • Residency verification requirements

  • Lack of UK address or incorporation

Solution: While LT Accounting doesn’t directly open bank accounts, we advise clients on the best UK or international banking options, prepare supporting documents, and liaise with banks or fintech solutions offering cross-border services.

4. Currency Exchange and Cross-Border Transfers

Getting paid in GBP while incurring costs in a different currency exposes non-resident contractors to exchange rate risks and bank fees. Moreover, banks in the contractor’s home country may hold UK payments due to tax reporting issues or AML checks.

Solution: We recommend using multi-currency business accounts (e.g., Wise, Revolut Business) for easier currency conversions and lower fees. We also advise on invoicing strategies that account for expected deductions and FX movements.

5. Navigating UK and Home Country Tax Systems

Non-resident contractors face a dual compliance burden:

  • Understanding UK CIS obligations, filing returns, and dealing with HMRC

  • Managing home country tax filings, which may require declaring foreign income and claiming foreign tax credits

Contractors unfamiliar with Double Taxation Agreements (DTAs) or without local tax representation often overpay or miss out on eligible reliefs.

Solution: LT Accounting collaborates with overseas advisors where necessary, assisting in the preparation of UK tax returns and providing documentation to support tax credit claims abroad. We also assist with claims for CIS refunds where no UK tax is ultimately due.

6. Keeping Up with Regulatory Changes

HMRC regularly updates CIS guidance, submission processes, and criteria for gross payment status. Contractors unfamiliar with UK legislation may inadvertently fall out of compliance.

Solution: Our clients receive proactive alerts and personalised advice to stay aligned with HMRC requirements, ensuring they are never caught out by regulatory updates.

7. Cultural and Business Practice Differences

Payment terms, contract expectations, and project timelines can vary significantly across borders. For example:

  • In the UK, contractors are legally obliged to deduct CIS before paying subcontractors.

  • In other countries, payment may be made in full, and the recipient is responsible for tax.

This disconnect can lead to confusion and disputes over net payments.

Solution: We help overseas clients understand how UK contractor-subcontractor relationships work and can negotiate on their behalf with UK parties to clarify expectations and avoid surprises.

How LT Accounting Supports Non-Resident Contractors

Navigating the UK’s Construction Industry Scheme (CIS) as a non-resident contractor can be complex, especially when combined with unfamiliar tax laws, international paperwork, and logistical hurdles. At LT Accounting, we provide a comprehensive, hands-on service that simplifies the entire process for foreign individuals and companies working in UK construction.

Our tailored solutions are built around one objective: ensuring you remain fully compliant with HMRC while minimising your tax exposure and admin burden.

1. CIS Registration and UTR Application

Whether you’re a subcontractor or main contractor based overseas, we’ll:

  • Register your business or personal details with HMRC Self Assessment or Corporation Tax

  • Apply for your Unique Taxpayer Reference (UTR)—a requirement before CIS registration

  • Manage your CIS registration, ensuring you’re verified properly in HMRC’s system

  • Help you avoid the default 30% deduction rate by completing all compliance steps on time

We also guide applicants through gross payment status applications, advising on eligibility, documentation, and improving your chances of acceptance.

2. Monthly CIS Filing and Ongoing Compliance

For overseas contractors operating regularly in the UK, monthly CIS compliance is non-negotiable. LT Accounting handles:

  • Submission of monthly CIS returns

  • Verification of your subcontractors (if you’re a contractor)

  • Preparation and delivery of CIS payment & deduction statements

  • Ensuring timely payments to HMRC to avoid penalties or interest

  • Keeping track of deadlines and obligations on your behalf

This service ensures you remain compliant with no surprises, allowing you to focus on project delivery rather than paperwork.

3. Year-End Accounts and Tax Returns

Non-resident contractors still need to:

  • File a UK Self Assessment tax return (for individuals)

  • Submit Statutory Accounts and Corporation Tax returns (for companies)

We prepare these documents accurately, ensuring:

  • All CIS deductions are properly credited

  • Any overpaid tax is reclaimed

  • Compliance with UK Companies House and HMRC regulations

We also assist in calculating tax liabilities across both UK and home country jurisdictions to help you avoid double taxation.

4. Double Taxation Relief and CIS Refunds

LT Accounting supports non-resident clients by:

  • Reviewing your tax residency and eligibility for relief under Double Taxation Agreements (DTAs)

  • Preparing and submitting applications to reclaim CIS deductions

  • Liaising with HMRC and your home country’s tax authority where necessary

  • Ensuring accurate documentation is provided, including Certificates of Residence and full records of UK activity

We streamline this complex process to help you receive tax refunds efficiently.

5. Strategic Business Structuring for Cross-Border Operations

If you plan to expand your presence in the UK, we can:

  • Advise on the most tax-efficient setup (e.g. branch vs subsidiary)

  • Assist with UK company formation

  • Help you meet UK tax and VAT obligations

  • Provide registered office services and act as your UK agent for HMRC communications

This strategic advice is ideal for foreign firms looking to establish a longer-term footprint in the UK construction market.

6. Bookkeeping, Payroll, and VAT Services

We also provide comprehensive outsourced support for growing non-resident construction businesses, including:

  • Bookkeeping tailored to UK standards

  • Payroll services for on-site UK employees or operatives

  • VAT registration and returns, especially for companies importing goods or supplying labour in the UK

This allows you to operate seamlessly, knowing that all financial compliance is handled under one roof.

7. Real-World Experience with International Clients

We’ve worked with clients from Europe, the Middle East, Asia, and North America—all operating within UK construction. Our global understanding, paired with local expertise, allows us to address the unique challenges faced by international contractors.

Clients value us for:

  • Clear communication

  • Fixed, transparent pricing

  • Rapid turnaround times

  • Proactive advice that saves money and prevents issues before they arise

Conclusion

The Construction Industry Scheme (CIS) is a crucial part of the UK tax framework, designed to ensure compliance and proper tax collection in the construction sector. For non-resident contractors, however, the scheme can pose significant challenges—from higher tax deductions and delayed payments to the risk of double taxation.

As we’ve explored, even if you or your company are based overseas, any income derived from UK-based construction activity is likely subject to CIS. Navigating this system as a non-resident involves more than just registration; it demands ongoing compliance, detailed record-keeping, and often, careful coordination with your home country’s tax authority.

Whether you’re a foreign subcontractor seeking to reduce your CIS deduction rate, a non-UK company setting up construction operations in Britain, or a project manager needing to claim back overpaid tax, having the right guidance is key.

At LT Accounting, we specialise in making the complex simple. Our CIS services for non-residents are designed to:

  • Ensure you’re properly registered and compliant with HMRC

  • Help you avoid unnecessary deductions and penalties

  • Maximise tax efficiency through careful planning and DTA reliefs

  • Provide seamless support for ongoing filings, refunds, and cross-border coordination

With years of experience supporting international contractors, we’re your trusted partner in navigating the UK construction tax landscape.