Construction Industry Scheme
Construction Industry Scheme (CIS)
Practical CIS support for contractors and subcontractors, from registration and monthly returns to deductions and tax reporting.
CIS creates responsibilities on both sides of the contractor and subcontractor relationship.
Baldwin's Accountancy Services can help contractors operate the scheme correctly and help subcontractors deal with deductions made from their income.
Contractor or subcontractor?
Paying subcontractors
If you engage subcontractors for work covered by CIS, your responsibilities include registration, verification, deductions and reporting.
CIS for contractorsBeing paid by a contractor
If deductions are taken from your payments, we'll help you understand them and account for them in your tax position.
CIS for subcontractorsSome businesses are both contractors and subcontractors. We can help with both sides of the scheme.
Our guide to CIS registrationWhen you pay subcontractors
CIS for contractors
Contractors must register where CIS applies and verify relevant subcontractors with HMRC. HMRC provides the deduction status and rate to use following verification.
- Registration and verification
- We can register you as a CIS contractor, verify subcontractors with HMRC and apply the deduction rate HMRC provides.
- Deductions and statements
- We'll calculate CIS deductions and prepare payment and deduction statements for your subcontractors.
- Returns and amounts due
- We'll prepare monthly CIS returns and explain the CIS/PAYE amount to pay to HMRC, dealing with nil returns or inactivity where applicable.
CIS for subcontractors
We can help with CIS registration, understanding deductions suffered and checking the payment and deduction statements you receive.
Those statements help us account for the deductions correctly. How they're dealt with depends on how your business is set up.
Sole traders and partners
Deductions suffered are included in your Self Assessment position, alongside the income they relate to.
Limited companies
CIS deductions suffered are reported through the company's PAYE scheme using an Employer Payment Summary (EPS) during the tax year. Any remaining deductions are dealt with under HMRC's applicable process.
Monthly CIS responsibilities
Contractors generally report payments to subcontractors through monthly CIS returns. We'll use the relevant payment records to prepare the return and deal with the deductions.
The normal filing deadline is the 19th following the end of the CIS tax month. If no subcontractors have been paid, we'll deal with the relevant nil return or inactivity notification.
Keeping your bookkeeping up to date helps make the monthly process more straightforward.
Last reviewed:
Monthly CIS returns (GOV.UK)Looking for an accountant? Let’s talk.
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