The purpose of CIS is to make sure that subcontractors pay the correct amount of tax. It applies to most construction work done in the UK, including building, decorating, repairs, demolition, and site preparation.

Who Does This Impact?

CIS affects both contractors and subcontractors in the construction industry:

A contractor is a business or person who hires other people or companies to do construction work.

A subcontractor is someone who is hired by a contractor to carry out construction work.

You can be both a contractor and a subcontractor at the same time, depending on your role in different jobs.

CIS applies to sole traders, partnerships, and limited companies. Even if construction work is not your main business, you may still need to register for CIS if you spend more than £3 million on construction within 12 months.

What Do You Need To Do?

If you’re a contractor, you must:

Register with HMRC as a contractor under CIS

Check whether your subcontractors are registered with CIS

Deduct the correct amount (usually 20% or 30%) from payments to subcontractors

Submit monthly CIS returns to HMRC

Pay the deductions to HMRC on time

If you’re a subcontractor, you should:

Register for CIS to avoid higher deduction rates

Keep proper records of payments and deductions

Include CIS deductions on your tax return

Keeping on top of CIS rules can be tricky, especially if you’re busy on-site or running your own business.

How We Can Help

We understand how complicated CIS can be – that’s why we offer expert help to make it easier for you.

Our team can:

Register you for CIS with HMRC

Handle your monthly CIS returns

Verify your subcontractors and ensure the right deductions are made

Help you claim back overpaid tax

Keep your records in order and up to date

Make sure you meet all HMRC deadlines and avoid penalties

Whether you’re a contractor, subcontractor, or both – we’re here to make CIS simple and stress-free. Get in touch with us today to see how we can support you.