Security CCTV installation is outside the Construction Industry Scheme.
Not a grey area. It is written into the legislation. Finance Act 2004 excludes “the installation of security systems, including burglar alarms, closed circuit television and public address systems”.
HMRC’s reasoning is that these systems are electronic, and installing them has no substantial effect on the fabric of the building.
So if a main contractor has been deducting 20% from your invoices, they have probably been deducting it from work that was never in the scheme.
Where it stops being simple
The exclusion covers CCTV installed for security purposes. It does not cover everything a CCTV firm does.
Still inside CIS:
- CCTV installed for traffic management rather than security
- Gates, barriers and security bollards
- Security fencing, which HMRC treats as ordinary fencing rather than as a security system
- Door access systems where the installation involves structural work
- Groundworks, ducting and civils to prepare for an installation
- Safes built into the structure of a building
Outside CIS:
- Burglar alarms
- Security CCTV
- Public address systems
- Electronic door entry
- Computerised locking
If you run cable through a building and mount cameras, that is outside. If your team digs a trench, sets a post and runs a duct for a car park camera scheme, that part is a different question.
What this means in practice
Most CCTV firms sit in one of three situations.
Deductions taken that should not have been. A contractor has applied CIS across your whole invoice. You can reclaim it, through your corporation tax return or an in-year repayment claim.
Registered when you did not need to be. Filing returns and running verifications for work outside the scheme. Time and cost for nothing.
Genuinely mixed. Security work outside, civils and traffic systems inside. This needs invoicing that separates the two clearly, because a single line saying “installation works” invites a contractor to apply CIS to all of it.
That last one is where we spend most of our time. Getting the invoice right at the point it leaves your office is far easier than arguing about it eighteen months later.
The VAT position follows the same line
The domestic reverse charge applies to construction services within CIS. Because security system installation sits outside CIS, the reverse charge does not apply to it either. You charge VAT normally.
Get this wrong in either direction and you have a VAT problem as well as a CIS one.
What we do
Work out which of your jobs sit inside the scheme and which do not, and set your invoicing up to reflect it.
Reclaim CIS deductions taken from work that was never in scope.
VAT treated correctly across mixed work.
Job costing so you can see margin by contract type. Most security firms find their reactive and maintenance work carries a very different margin to their installation work, and are surprised which way round it goes.
Plus the usual. And the standard work underneath it. Accounts, corporation tax, VAT, payroll and self assessment.
Who we work with
UK security and CCTV installation limited companies turning over between £500,000 and £5 million, anywhere in the UK.
Common questions
Do CCTV installers need to register for CIS?
For security CCTV work, no. It is excluded by statute. If you also do groundworks, traffic systems, gates or barriers, those parts are within the scheme and registration may be needed.
A contractor is deducting 20% from my invoices. Is that right?
Not for security installation work. It is worth checking what they are applying it to and challenging it.
Can I get back CIS that has already been deducted?
Usually yes, through your corporation tax return or an in-year repayment claim.
Does the VAT reverse charge apply to CCTV installation?
No. It follows CIS scope, and security system installation is outside it.
What if a job is part security, part civils?
Split it on the invoice. The civils element may be within CIS. The security installation is not.
Book a call. If a contractor has been deducting CIS from your security work, we will tell you whether it was right and what you can get back.
Common questions
Does CIS apply to cctv installers?
Security CCTV installation is outside the Construction Industry Scheme. Not a grey area. It is written into the legislation. Finance Act 2004 excludes “the installation of security systems, including burglar alarms, closed circuit television and public address systems”. HMRC’s reasoning is that these systems are electronic, and installing them has no substantial effect on the fabric of the building.
Does the VAT domestic reverse charge apply to cctv installers?
It follows the CIS answer above. Where the work falls inside CIS and your customer is VAT registered, registered under CIS and is not an end user, the reverse charge applies and you do not charge VAT. Where the work falls outside CIS, or the customer is an end user or a homeowner, you charge VAT as normal. Two jobs in the same week can be treated differently.
Who we work with
- Sector: construction only. Contractors, subcontractors and the trades that work on site.
- Turnover: roughly £500,000 to £5 million a year.
- Structure: mostly limited companies, plus established sole traders and partnerships.
- Where: our office is in Cannock, Staffordshire. We work with clients across the UK on cloud accounting.
Who we are not for: businesses outside construction, property developers, brand new start-ups with no trading history, and anyone who wants filing done and nothing else.
If you are not sure, here is the longer version. We will tell you on the first call if we are not the right fit.