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Construction Industry Scheme (CIS) Services

CIS Services help contractors and subcontractors in the UK construction industry meet their HMRC obligations accurately and on time. Whether you're registering, verifying subcontractors, or submitting monthly returns, we ensure compliance with the Construction Industry Scheme and keep your operations running smoothly.

Page Contents

What Construction Industry Scheme (CIS) Services Includes
Why Construction Industry Scheme (CIS) Services Matter
The Current Landscape (With Stats)
Who Needs Construction Industry Scheme (CIS) Services
Common Problems Construction Industry Scheme (CIS) Services Solve
How We Deliver Construction Industry Scheme (CIS) Services
Key Insights from Leading Sources
Is This Service Right for You?
Get Expert Help With CIS Compliance

What Construction Industry Scheme (CIS) Services Includes

  • Contractor and subcontractor CIS registration with HMRC
  • Subcontractor verification and status checks
  • Preparation and filing of monthly CIS returns
  • Calculating and deducting the correct tax rates (20%, 30%, or 0%)
  • Generating and sending payment and deduction statements
  • Managing missed or late returns and penalties
  • Advising on gross payment status applications
  • Liaising with HMRC on your behalf
     

Why Construction Industry Scheme (CIS) Services Matter

CIS compliance is a legal requirement. Mistakes can lead to costly penalties or delays in payments. Professional CIS support helps:

  • Ensure accurate tax deductions for subcontractors
  • Avoid HMRC penalties for late or incorrect returns
  • Save time on admin and paperwork
  • Improve cash flow management
  • Stay compliant with evolving HMRC guidance
  • Maintain subcontractor trust and legal standing
     

The Current Landscape (With Stats)

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Sources: HMRC Annual Report 2023, ONS Construction Industry Statistics, AAT Construction Compliance Survey 2024
 

Who Needs Construction Industry Scheme (CIS) Services

  • Contractors registered under the CIS
  • Subcontractors unsure about gross payment status
  • SMEs in the construction sector
  • Builders, electricians, plumbers, and tradespeople
  • Property developers and main contractors
  • New businesses hiring subcontractors for the first time
  • Firms previously penalised for late CIS returns
     

Common Problems Construction Industry Scheme (CIS) Services Solve

  • Late or incorrect CIS submissions leading to fines
  • Miscalculated deductions or incorrect tax rates
  • Unverified subcontractors resulting in 30% tax deductions
  • Incomplete payment and deduction statements
  • Confusion over gross payment status eligibility
  • Administrative overload from tracking multiple subcontractors
     

How We Deliver Construction Industry Scheme (CIS) Services

At Allied Financial Group, we streamline CIS compliance with precision and clarity:

  • Support for all HMRC CIS functions (registration, verification, filing)
  • Monthly return preparation and submission using secure, MTD-compliant software
  • Regular checks to ensure accurate deductions and HMRC alignment
  • Clear, timely communication with both contractors and subcontractors
  • Historical CIS reviews and catch-up filing if needed
  • All documents securely stored and available for review
     

Key Insights from Leading Sources

  • CIS penalties are widespread: HMRC issued over £83 million in CIS-related penalties in 2023. Most result from late or incorrect returns. Avoiding these starts with structured support and proper filing systems.
  • Verification is critical: Contractors must verify every subcontractor through HMRC. Failure to do so often leads to 30% tax deductions rather than 20%, directly impacting subcontractor income and business relationships.
  • Gross payment status is misunderstood: Many eligible subcontractors miss out on gross status because they don’t meet the strict requirements. Professional review and application support increases the chance of approval.
  • Monthly returns must be timely: Returns are due by the 19th of each month following payment. Delays - even by a day - incur penalties that stack monthly. Automating your submissions avoids this entirely.
  • Technology improves compliance: The AAT reports that 64% of construction firms now use cloud-based software to handle CIS submissions, improving speed, accuracy, and audit-readiness.
     

Is This Service Right for You?

If you're a contractor juggling multiple subcontractors or a subcontractor unsure about your status or deductions, CIS Services ensure you stay compliant, efficient, and in control. Whether you’re struggling with late returns or just starting out in construction, we’ll guide you through every step.
 

Get Expert Help With CIS Compliance

Let us manage your Construction Industry Scheme requirements so you can focus on building your business. From registration to monthly returns and beyond, we’ll make sure you never miss a deadline or deduction.

 

Last updated August 2025. Written and reviewed by Allied Financial Group’s in-house team of qualified accountants, tax specialists, and marketing consultants. All services comply with UK regulatory standards. This content is based on publicly available sources and internal industry knowledge.

What Our CIS Services Include

Fully managed support for contractors and subcontractors under the Construction Industry Scheme. Stay compliant, accurate, and stress-free.

CIS registration for contractors and subcontractors
Monthly CIS return submissions
Subcontractor verification with HMRC
Payment and deduction statement creation
Handling all HMRC correspondence

Frequently Asked Questions

Yes, if the CIS deductions taken from your payments are more than your total tax and National Insurance liability for the tax year, you can usually claim a refund. This often happens because CIS deductions are taken at a fixed rate (20% or 30%) and do not initially account for your Personal Allowance or business expenses. Subcontractors can claim back any overpaid tax through their annual Self Assessment tax return. Limited companies can offset CIS deductions against their PAYE/NICs liabilities or Corporation Tax.

To qualify for Gross Payment Status, a subcontractor must meet strict HMRC criteria, including:

A proven history of tax compliance (paying tax and National Insurance on time).

  • Their business must primarily be involved in construction work and be based in the UK.
  • They must meet certain turnover thresholds, which vary for sole traders, partnerships, and limited companies (e.g., £30,000 for sole traders, or £100,000 for a limited company, excluding materials and VAT).
  • Their business must operate through a UK bank account.

CIS applies to payments made to self-employed subcontractors in the construction industry. The deductions are an advance payment towards their self-employed tax and National Insurance. Subcontractors are not employees and typically do not have employment rights like sick pay or annual leave.

PAYE (Pay As You Earn) applies to employees. Under PAYE, employers deduct income tax and National Insurance contributions directly from an employee's wages before they are paid, along with other deductions like student loans. Employees have employment rights.

Contractors have a responsibility to correctly determine the employment status of their workers to ensure they are handled under the correct scheme.

Contractors have significant responsibilities, including:

  • Registering with HMRC for CIS before taking on their first subcontractor.
  • Verifying each subcontractor's CIS status with HMRC to determine the correct deduction rate (20%, 30%, or 0%).
  • Calculating and deducting the correct amount of tax from payments to subcontractors.
  • Paying these deductions to HMRC monthly.
  • Submitting monthly CIS returns (CIS300) to HMRC, detailing all payments made and deductions taken.
  • Providing a payment and deduction statement to each subcontractor for every payment made.
  • Keeping accurate records of all CIS transactions for at least 3 years.

Subcontractors should:

  • Register for CIS (highly recommended to benefit from the lower 20% deduction rate).
  • Provide their Unique Taxpayer Reference (UTR) to contractors for verification.
  • Keep all payment and deduction statements received from contractors.
  • Complete a Self Assessment tax return annually to declare their income and claim back any overpaid tax (if deductions exceeded their actual tax liability).
  • Account for their own National Insurance contributions and VAT (if VAT-registered), as CIS deductions only cover income tax.
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