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No. HMRC's CIS 340 guide, last updated 27 August 2026, says private householders having work done on their own home are not contractors. A homeowner pays your invoice in full, with no Construction Industry Scheme deductions.
The Construction Industry Scheme (CIS) only bites when a contractor pays a subcontractor for construction work. HMRC lists "ordinary householders that are having work done on their own premises, such as new house building, decoration, repairs or an extension" among those who are not contractors. So a kitchen fitter, roofer or plasterer paid directly by the homeowner is outside CIS for that job, even if the same person works under CIS for builders the rest of the week.
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Who pays you decides it
| Who pays you | CIS on that payment? | Why |
|---|---|---|
| A homeowner, for work on their own home | No | Private householders are not contractors |
| A builder or main contractor, for a homeowner's job | Yes | The builder is a contractor paying you for construction work |
| A property developer or speculative builder | Yes | Mainstream contractors, whatever they spend |
| A landlord with a small rental business | Usually no | Not in construction and well under the £3 million test |
| A landlord developing or converting property | Can be yes | That activity can make them a mainstream contractor |
| A shop, bank or housing association spending over £3 million a year on construction | Yes, unless an exception applies | They are deemed contractors, though a business's work on its own premises is exempt |
| A charity | No | CIS does not apply to payments by charities |
The question is never what kind of job it is. It is who is paying and whether they count as a contractor.
What this means for you
Homeowner work is simpler at the point of payment. No verification, no deduction and no monthly statement. The full invoice lands in your account.
The catch is that nobody has paid any of your tax on it in advance. On CIS work, the 20% deducted usually covers your bill and more, so many subcontractors expect a refund every year. Once a good share of your work is for homeowners, that refund shrinks or turns into a bill. You pay any balance by 31 January after the tax year, and if the bill is large enough, payments on account towards the next year can start too.
Homeowner income also counts for Making Tax Digital for Income Tax (MTD). Your qualifying income is all your self-employment and property income before costs, CIS or not. If it was over £30,000 in 2025-26, MTD starts for you on 6 April 2027.
Steps to handle homeowner jobs properly
- Invoice the homeowner for the full amount. Do not take off 20% or mention CIS.
- If you are VAT-registered, charge VAT in the normal way. The domestic reverse charge does not apply to private domestic customers.
- Record the payment as self-employed income, separately from your CIS income, so your CIS deductions still match your statements.
- Put money aside from each homeowner job for the tax. Your CIS deductions may no longer cover the whole bill.
- If a builder is paying you for a homeowner's job, give the builder your CIS details so they can verify you and deduct at 20%.
- At the year end, enter all your turnover on your tax return, with CIS deductions only from your contractors' statements.
When a private client is not just a homeowner
Some clients look private but are not. A friend buying houses to do up and sell is likely to be a property developer, which makes them a mainstream contractor. A landlord converting a building into flats may be one for that work. If a client in that position asks for your UTR so they can verify you, CIS probably applies, and they should give you a payment and deduction statement each month they deduct.
Use the free MTD check to see whether Making Tax Digital applies to you from April 2027, and visit the trades section for more on CIS.
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Questions people ask
Should a homeowner take 20% off my invoice for CIS?
No. HMRC's CIS 340 guide says private householders having work done on their own home are not contractors, so they do not register, deduct or send HMRC anything. Invoice them in full.
I do an extension for a homeowner but the builder pays me. Is that CIS?
Yes. What matters is who pays you. The builder is a contractor paying you for construction work, so CIS applies to your payment from the builder even though the end client is a homeowner.
Is a landlord a CIS contractor?
Usually not. A business outside construction is only a contractor once it has spent more than £3 million on construction in 12 months. A landlord who develops property, or converts a building to a new use, can be a mainstream contractor for that work.
Do I still pay tax on homeowner jobs?
Yes. The money goes on your tax return as self-employed income like any other. Because nothing was deducted, you pay the tax on it by 31 January after the tax year instead of having it taken in advance.
Does the VAT reverse charge apply to homeowner work?
No. GOV.UK says the domestic reverse charge does not apply to supplies to private domestic customers. If you are VAT-registered, you charge VAT on the invoice in the normal way.
Sources
- Construction Industry Scheme: a guide for contractors and subcontractors, CIS 340, sections 1.2, 2.2 and 2.3 (GOV.UK)
- What you must do as a CIS contractor: Who is covered by CIS (GOV.UK)
- Check when you must use the VAT domestic reverse charge for building and construction services (GOV.UK)
- Work out your qualifying income for Making Tax Digital for Income Tax (GOV.UK)
- What you must do as a CIS subcontractor: Pay tax and claim back deductions (GOV.UK)
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.
All CIS guides for subcontractors
What happens next
- Use the free Making Tax Digital checker to see your own start date and deadlines.
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- Questions about this page? Email hello@rightotax.co.uk.