Quick Answer
Yes, most flooring work in the UK is a "construction operation" under the Construction Industry Scheme (CIS) and contractors must verify subcontractors and deduct tax. The notable exception is carpet fitting, which HMRC has historically excluded as a non-construction soft furnishing.
Laying laminate, vinyl, hardwood, screed, tile and resin floors all fall inside CIS. Loose-laid carpet sits outside it. Underlay supplied with carpet is in the grey area, treated as part of the carpet job in practice.
What HMRC Says Is In Scope
- Installation of timber flooring, laminate, engineered wood.
- Vinyl flooring fixed in place (sheet or LVT, including welded seams).
- Ceramic, porcelain, stone, terrazzo tile installation.
- Screed laying, resin floors, epoxy floors.
- Subfloor preparation (latex, levelling compounds).
- Removal of old flooring as part of a construction project.
What Is Out of Scope
- Carpet fitting (the long-standing HMRC exclusion for soft furnishings).
- Cleaning a finished floor that does not involve installation work.
- Pure design or measuring services with no installation.
Why the Carpet Exception Exists
HMRC's view, set out in their CIS guidance, is that fitting soft floor coverings (carpet, rugs) is a furnishing rather than a construction operation. The same fitter installing LVT in the next room is doing CIS work. The distinction is the material, not the trade.
Mixed Jobs Are Mixed
A subcontractor invoice that covers both carpet fitting and LVT installation needs to be split. The carpet portion is out of CIS, the LVT portion is in. Most flooring subcontractors itemise the invoice for exactly this reason.
Materials vs Labour
Under CIS, the contractor deducts tax only from the labour element of the invoice, not from genuine cost of materials. Flooring subcontractors should itemise materials separately so deductions are correctly calculated. The standard deduction rate in 2026 is 20 percent for registered subcontractors, 30 percent for unregistered.
Householder vs Business
CIS only applies when the contractor is a "construction business" or a "deemed contractor" (large business spending heavily on construction). A homeowner getting their house refloored does not have to operate CIS on payments to the fitter, even though the work itself is CIS-scope work. The fitter still owes income tax, just not via CIS.
Common Mistakes
- Failing to verify a subcontractor with HMRC before paying them (results in mandatory 30 percent deduction).
- Paying for materials gross but treating labour as zero on the invoice, HMRC will challenge unrealistic splits.
- Assuming all flooring is exempt because carpet is exempt.
- Missing the monthly CIS300 return deadline (19th of each month).
What to Do If You Are a Flooring Sub
Register for CIS online through gov.uk. Once verified, you face a 20 percent deduction rather than 30. Keep itemised invoices showing materials and labour separately, and reconcile the deductions on your self-assessment or company corporation tax return each year.
Bottom Line
Hard flooring installation is CIS work. Carpet fitting is not. Mixed jobs get split on the invoice. Register as a subcontractor to get the lower 20 percent deduction rate, and check the latest gov.uk CIS guidance before assuming any edge case is in or out.
FAQ: Is Flooring Subject to CIS?
Is flooring subject to CIS for VAT purposes?
CIS and VAT are separate. Flooring installation is subject to CIS deductions on labour, and is also standard-rated for VAT at 20 percent unless a reduced-rate scheme applies (energy-saving or empty residential property over 2 years).
What about underfloor heating?
Underfloor heating installation is plumbing and electrical work clearly within CIS. The flooring laid over it is also CIS scope (except carpet).
What records do I keep?
HMRC requires monthly CIS300 returns, subcontractor verification numbers, payment and deduction statements (CIS300CS) given to each subcontractor, and itemised invoices showing materials vs labour. Keep for 3 years minimum.
Is the CIS deduction final tax?
No, it is an advance payment of the subcontractor's income tax or corporation tax. They reconcile via their annual return and either claim a refund or pay the balance.
Final Tips
- Hard flooring installation is CIS work.
- Carpet fitting is the famous exception, soft furnishing.
- Split mixed invoices clearly.
- Register to get 20 percent rather than 30 percent deduction.
What If You Are Hiring a Sub-Subcontractor?
CIS works through chains, not just direct relationships. A main contractor hires a flooring sub, who hires a labour-only sub for the install. Each link in the chain operates CIS for its payments down. The main contractor verifies the flooring sub, deducts where required, files monthly CIS300 returns. The flooring sub does the same for any labour-only subs.
Gross payment status (paid without deduction) is available to flooring subs that meet HMRC's turnover, business and compliance tests. The 2026 turnover threshold is 30,000 pounds net per partner, with a 200,000 pound minimum for limited companies. Compliance includes filing all returns on time and paying tax owed for the past 12 months.
Penalties for missed CIS300 returns start at 100 pounds for one day late and escalate sharply. The flooring sector is one of HMRC's audit focus areas, partly because of the carpet vs hard-floor split and partly because of cash payments in the trade.
