Construction Industry Scheme (CIS)

CIS Deductions & Returns


Under the Construction Industry Scheme, contractors deduct money from a subcontractor’s payments and pass it on to HMRC. 

The deductions count as advance payments towards the subcontractor’s tax and National Insurance. 

If you’re a contractor;

You will need to register as a contractor with HMRC if you pay subcontractors to do construction work. 

This applies to sole traders, limited companies and partnerships. 

You will need to register before you take on your first subcontractor. As part of your duties you will need to check that your subcontractors are registered for CIS. We can also check a subcontractors CIS status online via our payroll system.

Monthly returns need to be filed with HMRC even if no subcontractors have been paid that month. There are £100 fines for each missed CIS return not filed. 

Which is where we come in handy, we can file those returns for you, and keep track of what tax you owe. 

Any money paid to HMRC is shown on your payroll tax summary that we will provide. 

For a full list of contractor exceptions and how to register click here.

CIs (2)

If you’re a subcontractor; 

You need to register as a sub-contractor if you are paid to do construction work by a contractor. 

The contractor you are working for will deduct the CIS from your sales invoices, and they will give you monthly deduction statements. 

If you’re a subcontractor & contractor you need to register for both.

Any CIS deducted from your sales also gets recorded on your payslip & reduced any CIS owed if you’re a limited company. 

Click here to find out how to register for CIS as a subcontractor. 

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