The Construction Industry Scheme (CIS) is run by HM Revenue and Customs (HMRC).
Under the scheme, contractors deduct money from subcontractors' payments and pass it to HMRC. HMRC tells contractors the deduction rates.
You can find the CIS tax rates on GOV.UK . Currently, most subcontractors are taxed at a rate of 20%. Subcontractors who are unregistered are taxed at 30%.
The CITB levy is calculated on payments to:
Subcontractors can apply to HMRC for 'gross payment status ' where you pay them without a deduction. The CITB levy is not applied to CIS subcontractors who you pay gross.
On your Levy Return, you need to include the amount of CIS deductions you made from your subcontractors’ payments.
You may need to ask the person in your business responsible for making payments to subcontractors for a list of those you have made CIS deductions from.
For more information about CIS, visit GOV.UK