CIS Scheme,
fully managed.
Full CIS compliance support for contractors and subcontractors in the construction industry.
What Is the CIS Scheme?
The Construction Industry Scheme (CIS) is a HMRC tax framework that governs how contractors pay subcontractors in the construction industry. Under CIS, contractors must deduct money from subcontractor payments and submit these to HMRC — acting, in effect, as tax collectors.
The scheme applies to most construction work in the UK, including building, demolition, civil engineering, and installation work. Non-compliance can result in significant penalties and HMRC investigations.
Who Does CIS Apply To?
CIS applies to any business that engages subcontractors to carry out construction work in the UK. If you are a contractor — meaning you pay subcontractors for construction work, even if you are not a construction company yourself — you must register with HMRC, verify each subcontractor before making a payment, and deduct CIS tax at the appropriate rate. The standard deduction rate is 20% for registered subcontractors and 30% for those who are unverified or unregistered.
Subcontractors must also be registered with HMRC to benefit from the lower deduction rate. Without registration, 30% is deducted from all labour payments — a significant cash flow impact. Subcontractors who meet HMRC's turnover and compliance criteria can apply for gross payment status, meaning no deductions are taken at all. We assess eligibility, manage the application, and handle HMRC correspondence throughout.
Monthly CIS returns must be submitted to HMRC by the 19th of each month, detailing every subcontractor paid in the previous tax month. Late or inaccurate returns attract automatic penalties. We manage the entire cycle — registration, verification, monthly filing, payment and deduction statements, and year-end reconciliation — so you stay compliant without the administrative burden.
Why Choose Brathwaite?
Monthly CIS returns filed accurately and on time with HMRC
Subcontractor verification and deduction rate management
CIS tax reclaim support for subcontractors who have overpaid
Payroll integration for contractors managing multiple subcontractors
Advice on gross payment status and how to qualify
Representation and correspondence with HMRC on CIS matters
Frequently Asked Questions
What is the CIS scheme?
The Construction Industry Scheme (CIS) is a HMRC tax deduction scheme for the construction industry. Contractors deduct money from subcontractor payments and pass it to HMRC as advance payments towards the subcontractor's tax and National Insurance. It applies to most construction work on buildings and structures in the UK.
Do I need to register for CIS?
Yes, if you are a contractor working with subcontractors. Contractors must register with HMRC and verify subcontractors before making payments. Subcontractors should also register to avoid the higher 30% deduction rate — registered subcontractors pay either 20% (standard) or 0% (gross payment status).
Can I reclaim CIS deductions?
Yes. If you are a subcontractor, the CIS deductions taken from your payments count as payments towards your tax bill. If you have been overcharged, you can reclaim the difference through your self assessment tax return or, for limited companies, through your corporation tax return. We manage this process on your behalf.
What are the penalties for non-compliance?
HMRC can issue fixed penalties for late or inaccurate CIS returns, starting at £100 per month. For serious or persistent non-compliance, penalties can reach thousands of pounds. We ensure all your returns are submitted correctly and on time.