Is a CIS subcontractor employed or self-employed?

Is a CIS subcontractor employed or self-employed? A CIS subcontractor must be self-employed under the terms of the job. If those terms make you an employee, HMRC says CIS does not apply and PAYE should. HMRC's CEST tool, updated 30 April 2025, checks it. No. CIS is a way of collecting tax from people who are already self-employed. HMRC says the scheme does not apply to employees, and that it is the terms of each engagement that decide status, not how you were paid before. For CIS, HMRC says the contractor must consider your status when you are first taken on, and each monthly return includes a declaration that subcontractors are not employees. Courts and tribunals make the final decision if it is disputed. Check Employment Status for Tax is HMRC's online tool. It gives HMRC's view of whether a worker is employed or self-employed for tax, and HMRC stands by the result if the answers given are accurate. Read the full answer, with every source, at rightotax.co.uk.