Most trades chasing CIS subcontractor work go about it backwards. They ring round whoever is hiring this week, accept the rate on offer, and only discover afterwards that the payer is slow, argues over variations, or never verified them properly with HMRC, so a higher deduction comes off every invoice. The subcontractors who actually earn well under the Construction Industry Scheme do two things differently. They build a spread of clients who pay predictably, and they get their books tidy enough to apply for gross payment status. This guide covers both: where the work sits in the UK market, and what HMRC tests before it lets you be paid gross.
Where CIS subcontractor work actually comes from
There is no single marketplace for CIS subcontractor work. It flows through a handful of distinct channels, and each one has a different rhythm, a different payment culture and a different way in. Working two or three of them at once is what smooths out a year.
- Main contractors and developers. The classic route. Larger packages, longer runs, but you are often at the end of a payment chain and subject to whatever the main contract says about applications and payless notices. Get onto approved supply chain lists early rather than pitching mid-project.
- Property managers and block managers. Reactive repairs, void turnarounds, planned redecoration and communal works. Individually small, but the volume is relentless and it repeats every month. This is the steadiest channel most small firms overlook.
- Letting and estate agents. Similar to block management but faster moving, driven by tenancy changes, check-out reports and tenant-reported faults. Agents value speed of response above almost everything.
- Social housing providers and local authorities. Frameworks and term contracts, usually subcontracted down through a principal contractor. Slow to get on, hard to lose once you are on. Expect compliance paperwork, DBS checks and strict reporting.
- Facilities management firms. Planned and reactive maintenance across commercial portfolios. Rates are often keener, but scheduling is predictable and the volume can fill quiet weeks.
- Insurance and claims networks. Escape of water, fire and impact damage repairs. Good margin on reinstatement work, but you will be assessed on documentation and photographic evidence as much as on workmanship.
The property maintenance route is underrated
Development work dries up in cycles. Maintenance does not, because occupied buildings keep breaking regardless of what interest rates are doing. A property manager with a few hundred units under management generates a continuous stream of jobs, and once you are the trusted name for a portfolio, the work arrives without you quoting for it. If you want to understand what the other side of that relationship looks like before you pitch, the PlanaJob property managers hub sets out how PMs raise and award jobs.
Peer referral still converts best
The fastest way into a new channel is another subcontractor already in it, passing on work they cannot cover. Cultivate that deliberately. Trade communities such as Contractor Club are useful for exactly this sort of lead swapping and for a sanity check on which payers in your area are worth working for.
First, check the job is actually inside CIS
Not every trade job for a property client falls under the Construction Industry Scheme, and pricing as though it does when it does not causes avoidable arguments. HMRC defines construction operations fairly widely, but there are notable carve-outs.
- Generally inside CIS: repairs, alterations, decoration and demolition to permanent or temporary structures; installing heating, lighting, power, water and ventilation systems; site preparation and groundworks.
- Generally outside CIS: professional services such as architecture and surveying; manufacture of components off site where you do not install them; delivery of materials; and certain finishing trades that HMRC lists as excluded, carpet fitting being the well-known example.
- Also relevant: work carried out directly for a private householder on their own home is normally outside CIS entirely, because a homeowner is not a contractor.
Always check the current scope on GOV.UK rather than relying on what a client tells you, and note that a property owner or managing agent can become a deemed contractor once their construction spend crosses HMRC's threshold over a rolling period. If that has happened, they must operate CIS on your payments whether or not construction is their main business.
How to get on a property manager's approved list
Property managers are not looking for the cheapest quote. They are looking for someone who will not create a complaint, a compliance gap or an unexplained invoice. Turn up with the following ready and you will be ahead of most applicants.
- A single documents pack. UTR, CIS registration confirmation, company or sole trader details, public liability certificate, and the trade credentials for your discipline such as Gas Safe or a competent person scheme registration. One PDF, dated, easy to forward.
- A stated response time. Say what you will do within two hours, twenty-four hours and five working days, and then hold to it. Vague availability loses more work than high prices.
- Photographic evidence as standard. Before, during and after, timestamped. Managers need it for leaseholders, landlords and insurers.
- A clean labour and materials split on every invoice. This is the one that costs subcontractors real money. CIS deductions apply to the labour element, and materials are only excluded when they are properly itemised. Bundle it all into one figure and you invite a deduction on the whole lot. The CIS tax explainers on the PlanaJob blog cover how deductions and reclaims work in detail.
- Written scope confirmation before you start. Especially on reactive jobs where the fault described is not the fault you find.
Gross payment status: what HMRC actually tests
Gross payment status means the contractor pays your invoices in full and you settle your own tax and National Insurance through self assessment or corporation tax. Nothing is deducted at source. HMRC applies three tests, and you must pass all of them.
The business test
You must be carrying on a genuine construction business in the UK, with a business bank account. Straightforward for most established firms.
The turnover test
HMRC looks at your construction turnover excluding VAT and the cost of materials over the previous twelve months, and compares it against a published minimum. There is a per-director or per-partner figure and an alternative whole-business figure for larger operations. The thresholds are set by HMRC and do change, so check the current numbers on GOV.UK before you apply rather than working from what someone told you on site.
The compliance test
The one that catches people. HMRC reviews a twelve-month qualifying period and expects your tax obligations to have been met on time: self assessment or corporation tax returns, PAYE and CIS returns if you have them, and, following changes introduced in 2024, your VAT obligations too. HMRC can also refuse or immediately cancel gross status where there is evidence of serious tax fraud.
Keeping it once you have it
HMRC re-tests holders annually and can withdraw the status. Protect it by filing everything on time even when a return is nil, paying on the due date rather than the day the reminder lands, keeping your business bank account genuinely separate, and telling HMRC promptly about changes to your business structure. Losing gross status mid-year is painful, because deductions restart immediately across every client.
Does gross status actually make you more money?
Strictly, no. It changes when you pay tax, not how much. What it changes is cash flow, and for a growing firm that is often the binding constraint: you can fund materials, wages and vans out of your own turnover instead of waiting on a repayment. It also makes you more attractive to some main contractors, who see it as a proxy for a well-run business. If you are weighing that against the cost of tighter bookkeeping, Construction Arbitrage is a useful read on how construction firms structure margin and working capital.
A fee-free route to steady CIS subcontractor work
Once your compliance is in order, the constraint becomes lead flow. PlanaJob connects verified UK property managers and letting agents directly with local trades, with no commission taken out of the job value, so the rate you quote is the rate you invoice. Managers post the job, compare quotes from vetted contractors, and award it, which means you are competing on responsiveness and quality rather than on who paid for the lead. If you want that kind of repeat maintenance work in your area, you can create a contractor account and start quoting.
One caveat worth stating plainly: this article is general information, not tax advice. Every CIS rule referenced here is HMRC's, and the current position, thresholds and forms are published on GOV.UK. Check there or with your accountant before you act.
FAQ
Do I need gross payment status to win CIS subcontractor work?
No. Registered subcontractors are paid under deduction and that is completely normal across the industry. Most property managers and many main contractors will not ask about your payment status at all. Gross status is a cash flow tool, not an entry requirement, though a few larger supply chains do treat it as a signal of a well-run business.
What happens if a contractor deducts at the higher rate instead of the standard rate?
That usually means you are either not registered under CIS or the contractor has not verified you with HMRC before paying. Fix the registration first, then ask the contractor to verify you, which they must do before your first payment. Deductions already taken are still credited to your tax account, so nothing is lost permanently, but you will be waiting until your return is processed to recover the difference.
Is all property maintenance work covered by CIS?
No. Scope depends on the type of work and on who is paying. Work done directly for a private homeowner sits outside the scheme, and certain operations such as carpet fitting, materials delivery and professional services are excluded even on a commercial job. Where a managing agent, landlord or main contractor is the payer and the work is a construction operation, assume CIS applies and confirm with HMRC's guidance.