Importance of letting HM Revenue & Customs (HMRC) know about your subcontractors
The Construction Industry Scheme (CIS) requires a contractor to verify all new subcontractors that they engage. In order for HMRC to help you to do this correctly, you need to let HMRC know if you are using subcontractors for construction work now or in the near future.
By ticking this box HMRC will register you as a CIS contractor and will send you the documentation you need in order to fulfill your obligations.
A subcontractor is a person or body that has agreed to carry out construction work for a contractor.
The tax year runs from 6 April to the following 5 April each year. For example, 6 April 2014 to 5 April 2015.