CIS gross payment status: the tests explained

Gross payment status means contractors pay you in full, with no CIS deduction. You then pay all your tax and National Insurance at the end of the tax year, through Self Assessment (sole traders and partners) or Corporation Tax (companies).

The tests (from GOV.UK)

• You have paid your tax and National Insurance on time in the past.
• Your business does construction work, or provides labour for it, in the UK.
• Your business is run through a bank account.

Turnover test

HMRC looks at your turnover for the last 12 months, ignoring VAT and the cost of materials. It must be at least:

• £30,000 if you are a sole trader
• £30,000 for each partner, or at least £100,000 for the whole partnership
• £30,000 for each director, or at least £100,000 for the whole company

If a company is controlled by 5 people or fewer, it needs annual turnover of £30,000 for each of them.

Cash-flow effect

On the £5,000 invoice in our worked examples, gross status means receiving £5,000.00 now instead of £4,160.00. You still owe the tax; you just pay it later.

Source: GOV.UK — how to get gross payment status.

Last checked: 19 October 2026. Estimates only, not tax advice.