CIS
CIS - tax compliance for the construction industry.
The Construction Industry Scheme is a tax deduction system that applies across the entire UK building trade. It affects both contractors and subcontractors - regardless of business structure. We handle CIS registration, monthly returns and tax refund claims so you can focus on the job, not on HMRC paperwork.
What is CIS
Construction Industry Scheme - UK tax deductions for the building trade
CIS is a statutory tax deduction scheme that applies to the construction industry in the United Kingdom. It covers every business involved in construction, renovation or installation work - regardless of size. This includes limited companies (LTD), LLPs, partnerships and self-employed individuals.
- Mandatory registration for both contractors and subcontractors
- Applies to all construction, renovation and installation work
- Covers LTD companies, LLPs, partnerships and self-employed workers
- Regulated by HMRC - the UK tax authority
Contractor and subcontractor
Deduction rates: 20% or 30%
Contractors are legally required to deduct tax from payments made to subcontractors. The standard deduction rate is 20% - provided the subcontractor is registered under CIS. Without registration, the rate rises to 30%. That is why registration is the first and most important step.
- 20% deduction with active CIS registration
- 30% deduction for unregistered subcontractors
- 0% (gross payment status) for businesses meeting additional criteria
- Subcontractor verification required before every payment
Monthly returns
CIS returns and contractor obligations
Every contractor must file monthly CIS returns with HMRC - even if no payments were made during the period. Each return includes subcontractor details, payment amounts and deductions applied. Timeliness is critical - late filing results in financial penalties.
- Monthly CIS300 returns filed with HMRC
- Deadline: the 19th of each month
- Filing required even when no payments were made (nil return)
- Penalties for late or missing returns
CIS tax refunds
Recovering overpaid tax
CIS deductions are advance tax payments - and they often exceed the subcontractor's actual tax liability. Overpayments can be reclaimed through the annual Self Assessment return or, for companies, offset against Corporation Tax. We help maximise refunds and make sure no overpayment goes unclaimed.
- Refunds via Self Assessment for self-employed individuals
- CIS deductions offset against Corporation Tax for limited companies
- Review of accounts and optimisation of refund amounts
- Full liaison with HMRC on all refund claims
Need help with CIS compliance?
Speak to our specialist.
Tell us about your situation - whether you are a contractor or subcontractor and what type of work you do - and we will suggest a solution. Free consultation, no obligation.