CIS accountants for subcontractors
For subcontractors and contractors in every trade across North West London. We work out what the Construction Industry Scheme has taken from your pay, claim back anything you overpaid and keep the monthly paperwork on time.
ACCA qualified accountants with over 20 years in practice
How CIS works
CIS, the Construction Industry Scheme, is how HMRC collects tax from people working in construction. When a contractor pays you, they take tax off first and pass it to HMRC, and every pound taken counts as an advance payment towards your tax and National Insurance for the year.
How much comes off depends on your status. If you are registered for CIS, contractors take 20% from your pay before it reaches you (30% if you are not registered), and with gross payment status nothing is taken at all.
The deduction should only come off your labour. Before working it out, the contractor takes away the VAT, materials you paid for yourself, plant hired for the job, consumables, fuel used except for travelling, and any manufacturing or prefabricating materials.
Most construction work is in the scheme, from site preparation and demolition to decorating, installing heating, lighting and water, and cleaning up after building work. Architecture, surveying, carpet fitting and delivering materials are examples of work that sits outside it.
What we do for subcontractors
Claim back CIS you overpaid
As a sole trader your CIS comes back through your Self Assessment tax return: your gross pay goes in as income and the total deductions as CIS deductions, and HMRC sets them against your bill and repays the extra.
How a CIS tax refund worksRegister you for CIS and Self Assessment
You need a UTR, your Unique Taxpayer Reference, to register for CIS. If you are new and do not have one, registering for Self Assessment as a subcontractor sets up both at once.
Keep your records on your phone
Send us photos of your monthly CIS statements and receipts as you go. We keep them in order through the year, so nothing is missing when the tax return is due.
VAT and the reverse charge
Once you are VAT registered, CIS work for another VAT registered business usually uses the domestic reverse charge, so your customer accounts for the VAT instead of you.
VAT reverse charge for builders
What we do for contractors
If you pay subbies, we verify each one with HMRC, send their payment and deduction statements, and file your monthly return by the 19th, including the nil returns needed again since 6/4/2026.
CIS returns for contractorsWhat changed on 6/4/2026
Nil returns are back
Contractors who pay no subcontractors in a month must file a nil return again, or tell HMRC in advance.
Public bodies are outside the scheme
Payments made by local authorities and some other public bodies no longer fall under CIS.
Gross payment status can go at once
HMRC can remove gross payment status straight away where a business knew, or should have known, that its payments were linked to fraud. The wait before you can apply again rises from 1 year to 5 years, with a penalty of up to 30% of the lost tax.
Key dates and penalties for contractors
From GOV.UK, for contractors who pay subcontractors under CIS.
| What | Rule or date | Source |
|---|---|---|
| Payment and deduction statement | Within 14 days of the end of each tax month (tax month 6th to 5th) | GOV.UK (opens in a new tab) |
| Monthly return | By the 19th of the month after the tax month ends | GOV.UK (opens in a new tab) |
| Nil return | Must file a nil return, or tell HMRC in advance no payments will be made (rule in force from 6/4/2026) | legislation.gov.uk (opens in a new tab) |
| Payment to HMRC | By the 22nd of the month (19th if paying by post) | GOV.UK (opens in a new tab) |
| Late return penalty 1 day | £100 | GOV.UK (opens in a new tab) |
| Late return penalty 2 months | £200 | GOV.UK (opens in a new tab) |
| Late return penalty 6 months | £300 or 5% of the CIS deductions on the return (whichever is higher) | GOV.UK (opens in a new tab) |
| Late return penalty 12 months | £300 or 5% of the CIS deductions on the return (whichever is higher); later returns may get up to £3,000 or 100% of deductions | GOV.UK (opens in a new tab) |
| Wrong employment status declaration | Penalty up to £3,000 | GOV.UK (opens in a new tab) |
| Records | Keep at least 3 years after the end of the tax year; fine up to £3,000 if records cannot be shown | GOV.UK (opens in a new tab) |
| Penalty appeal | Within 30 days of the penalty notice date | GOV.UK (opens in a new tab) |
| Gross payment status withdrawal appeal | Within 30 days of the withdrawal letter; wait 1 year to reapply after cancellation | GOV.UK (opens in a new tab) |
| Gross payment status removed for fraud | Immediate removal possible; reapply wait 5 years; penalty up to 30% of lost tax (from 6/4/2026) | GOV.UK (opens in a new tab) |
| Limited company repayment claim | After the tax year ends; online or post for the past 6 tax years; HMRC usually responds within 8 weeks | GOV.UK (opens in a new tab) |
Trades we work with
CIS covers most of the building trades. We work with builders, electricians, plumbers and heating engineers, roofers, plasterers and dryliners, groundworkers, scaffolders and the other trades on site.
The tax rules on this page come from GOV.UK and HMRC guidance. Last checked .
Questions about CIS
Should I register for CIS?
If you are not registered, contractors take 30% from your pay instead of 20%. Registering online is the quickest way, and you need your UTR to do it.
Can I get my CIS back?
If more was taken than your tax and National Insurance for the year, yes. As a sole trader you claim through your Self Assessment return, and HMRC repays what is left after your bill is covered.
Do I pay CIS on materials?
Not on materials you bought yourself. The contractor should take them off, with the VAT, before working out the deduction. If too much was taken, it still counts towards your tax for the year.
What is gross payment status?
It means contractors pay you in full, with nothing taken off. You need to pass a business test, a turnover test and a test on paying tax on time, and HMRC reviews your status every year.
When is my monthly CIS return due?
By the 19th of the month after the tax month ends, so the return for 6/5 to 5/6 is due by 19/6. A return one day late brings a £100 penalty.
Let us look at your CIS
Tell us how you work and we will send you a quote. Or book a free call and talk it through first.