Umbrella and CIS are two different ways of being paid in construction. The right route depends on employment status, working arrangements and the level of independence involved—not simply personal preference.
How umbrella employment works
An umbrella company employs the worker, processes tax and National Insurance through payroll, and issues payslips. This can suit temporary assignments where the worker operates under the client’s supervision and control.
Employment rights and deductions should always be explained clearly before an assignment begins.
How CIS payments work
Under CIS, a genuinely self-employed subcontractor invoices for completed work. The contractor verifies them and may deduct tax before paying the balance.
CIS does not automatically make someone self-employed; their actual working practices must support that status.
Choose through a status assessment
Review control, substitution, financial risk and how the work is delivered. A documented status assessment helps the business choose the appropriate payroll route and explain it confidently.
