CIS Returns Service

The Construction Industry Scheme (CIS) is an HMRC system for certain construction payments made by contractors to subcontractors. Contractors generally deduct tax from relevant payments and report those payments and deductions through monthly CIS returns.

After subcontractor verification, HMRC confirms the applicable deduction treatment. The usual rates are 20% for registered subcontractors, 30% for unregistered or unmatched subcontractors and 0% for subcontractors with gross payment status.

A CIS returns service helps contractors manage subcontractor verification, payment and deduction records, monthly CIS return preparation, HMRC filing and ongoing compliance.

CIS deductions are advance payments towards tax and National Insurance liabilities. A subcontractor can report those deductions through the relevant tax return, and a refund may be due if the total tax deducted is more than the final liability.

You do not have to use an accountant, but professional CIS support can save time and reduce the risk of incorrect deductions, missed returns and incomplete records.

HMRC can charge penalties for late CIS returns. The penalty depends on how late the return is, so outstanding returns should be submitted as soon as possible.

Businesses that meet HMRC’s contractor criteria and pay subcontractors for construction work generally need to register as CIS contractors. Some businesses outside construction can also come within CIS where they spend heavily on construction.

If you have no subcontractor payments to report, you generally need to submit a nil return or tell HMRC that you are temporarily inactive for CIS, depending on your circumstances.