The Construction Industry Scheme (CIS) is a tax system that was set up by HMRC to collect payments on account from subcontractors in the construction industry. Contractors will verify the status of a subcontractor and make the necessary deductions from their payment depending on their verification status. Subcontractors will either be not registered with HMRC (taxed at a higher rate of 30%), registered under deduction (taxed at the standard rate of 20%) or registered for gross payments. To register for gross payments a subcontractor must meet certain criteria.