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If you鈥檙e a business which operates as a Construction Industry Scheme (CIS) contractor, you may prefer to split into smaller sections. You can then ask HMRC to treat each division as a separate contractor. HMRC call this 鈥榤ultiple contractor status鈥�.

If HMRC agree they鈥檒l set up a CIS record for each division 鈥� who鈥檒l all need to follow the rules for contractors.

Although treated as separate contractors, each division will stay part of the same business and share the same unique taxpayer reference it got when it registered for CIS.

How to apply for multiple contractor status

To get multiple contractor status, you鈥檒l need to write to HMRC before the start of the tax month immediately preceding the tax month you want the multiple contractor status to begin. Include

• confirmation of the first tax period for which the multiple contractor status is to have effect
• details of which subcontractors will be in each division鈥檚 contractor scheme, for example, all subcontractors paid by the London office
• a declaration that CIS payments are only paid to subcontractors in the groups you鈥檝e shown

How to end multiple contractor status

You鈥檒l keep multiple contractor status until you let HMRC know you no longer want it.

To end your multiple contractor status, you鈥檒l need to write to HMRC before the start of the tax month you would like the multiple contractor status to end.