What is a deemed contractor under CIS?

What is a deemed contractor under CIS? A deemed contractor is a business or public body outside construction that spent more than £3 million on construction in 12 months. Under the test in force since April 2021, it must then run CIS on payments within the scheme. More than £3 million spent on construction operations in any rolling 12-month period. HMRC's manual says the figure excludes VAT and the cost of materials. No. A business that includes construction work and pays others for it is a mainstream contractor from its first payment, whatever it spends. Deemed status is for businesses and public bodies outside construction. Usually not. A deemed contractor that is a business does not have to apply CIS to work on property used for its own business. Work on property it lets out, sells or holds as an investment is a different matter. Read the full answer, with every source, at rightotax.co.uk.