CIS Tax Services
for construction.
Construction Industry Scheme tax management for contractors and subcontractors — including reclaims and gross payment status.
CIS Tax Explained
The Construction Industry Scheme (CIS) requires contractors to deduct tax from subcontractor payments at source — either 20% for registered subcontractors or 30% for unregistered ones. These deductions count as advance payments towards the subcontractor's tax liability.
For many subcontractors, particularly those with legitimate business expenses, the deductions taken exceed the actual tax owed. This means they are entitled to a refund — but only if they file correctly and on time. We manage this entire process to ensure every eligible subcontractor reclaims what they are owed.
Our CIS Tax Services
We prepare and submit monthly CIS returns on behalf of contractors, ensuring every subcontractor payment is correctly reported to HMRC by the 19th of each month. Prior to any payment being made, we handle subcontractor verification — checking each subcontractor's status with HMRC and confirming the correct deduction rate to apply. We also produce payment and deduction statements for subcontractors at the end of each tax month, which they need to offset against their own tax bills.
At year-end, we carry out a full CIS reconciliation, confirming that total deductions reported on monthly returns match the payments made and that subcontractor records are accurate. For subcontractors who have suffered CIS deductions throughout the year, we manage the reclaim process — either through the self assessment tax return for sole traders or through the corporation tax return for limited company subcontractors. In many cases, subcontractors are entitled to a meaningful refund, and we ensure every eligible pound is recovered.
Where HMRC has issued penalty notices for late or incorrect CIS returns, we can review the circumstances, prepare representations to HMRC, and handle the appeals process on your behalf. We also advise on the steps required to avoid recurrence and, where appropriate, on the steps to apply for gross payment status to remove deductions entirely.
Why Choose Brathwaite?
CIS tax reclaim preparation for subcontractors who have overpaid
Gross payment status applications and advice on qualifying
Monthly CIS return filing for contractors
End-of-year CIS reconciliation and deduction statements
Integration with self assessment and corporation tax filings
HMRC correspondence and dispute resolution support
Frequently Asked Questions
How do I reclaim overpaid CIS tax?
If you are a self-employed subcontractor, CIS deductions are offset against your income tax and National Insurance bill via your self assessment return. If more has been deducted than you owe, you will receive a refund. For limited company subcontractors, the reclaim is made via the corporation tax return. We handle this entire process.
What is gross payment status?
Gross payment status means HMRC pays you without any CIS deductions — you receive the full value of your invoices. To qualify, you must meet HMRC's compliance, turnover, and business tests. We can assess your eligibility and manage the application if you qualify.
Do I need to register as a contractor or subcontractor?
If you pay subcontractors for construction work, you must register as a contractor with HMRC before making any payments. If you work as a subcontractor, you should register to ensure you pay only the standard 20% deduction rate rather than the higher 30% unregistered rate. We handle both types of registration.
What construction work does CIS apply to?
CIS applies to most construction work in the UK, including building work, alterations, repairs, decorating, civil engineering, and installation of systems such as heating, lighting, and power. Some work is exempt — notably professional services, architecture, and certain surveying activities.