HMRC (HM Revenue & Customs)

Short Definition: The UK authority responsible for tax, including CIS administration.

Long Definition: HM Revenue & Customs (HMRC) is the UK government department responsible for collecting taxes and enforcing tax rules, including the Construction Industry Scheme (CIS). Under CIS, HMRC manages subcontractor registration, verification, deduction rates, and compliance checks. Contractors submit monthly CIS returns to HMRC, while subcontractors report their income through Self Assessment. HMRC also handles tax rebates, penalties, and inspections. For contractors and subcontractors, dealing with HMRC correctly is essential to avoid fines, ensure accurate deductions, and maintain good compliance status, especially if applying for or keeping Gross Payment Status.