CIS Tax for Contractors UK —
Verify, Deduct and Report Correctly
Construction Industry Scheme support for contractors and subcontractors, including verification, monthly returns, deduction statements, gross payment status and deduction-credit reporting.
CIS Works Only When Status and Verification Are Right
The Construction Industry Scheme requires contractors to verify subcontractors, apply the deduction rate confirmed by HMRC, give deduction statements where required and submit monthly returns.
Registered and verified subcontractors are generally subject to the standard CIS deduction rate, unregistered or unverified subcontractors can be subject to the higher rate, and subcontractors with gross payment status are paid without CIS deductions.
CIS deductions are advance payments towards the subcontractor’s tax position. The way those credits are used or reclaimed depends on whether the subcontractor is a sole trader, company or other business form.
CIS does not replace employment-status rules. A worker who is actually an employee should not be placed into CIS merely because they work in construction or issue an invoice.
Typical Scope
- ✓CIS contractor registration support
- ✓Subcontractor verification
- ✓HMRC deduction-rate confirmation
- ✓Monthly CIS return preparation
- ✓Payment and deduction statements
- ✓Nil or inactivity workflow where applicable
- ✓CIS payment information
- ✓Subcontractor deduction-credit review
- ✓Gross payment status application support
- ✓Gross status compliance review
- ✓CIS corrections
- ✓HMRC CIS correspondence where authorized
A Controlled Business Tax Workflow
Confirm contractor obligations
We establish whether CIS applies to the business and the construction payments being made.
Verify subcontractors
Required subcontractor details are checked with HMRC before the relevant payment.
Calculate and document
The HMRC-confirmed deduction treatment is applied and the required statement is prepared.
File the monthly return
The month’s payments and deductions are reported to HMRC by the recurring CIS deadline.
The Points That Actually Matter
Monthly filing
CIS monthly returns are generally due by the 19th following the end of the tax month.
Deduction rates
HMRC generally applies the standard rate to registered subcontractors and the higher rate where registration or verification conditions are not met.
Gross status
A subcontractor with gross payment status is generally paid without CIS deductions.
Business Tax Built Around Evidence & Process
Verification-led
The deduction rate follows HMRC verification rather than assumption.
Monthly workflow
Verification, statements, returns and payment information are coordinated around the CIS cycle.
Gross-status support
Eligibility and ongoing compliance can be reviewed where a subcontractor seeks gross payment status.
Portal coordination
CIS records and service requests can be handled through the Britvex portal.
Keep the Tax Position Connected
CIS Tax (Contractors) — Common Questions
What are the main CIS deduction rates?
HMRC generally applies 20% for registered subcontractors, 30% where the subcontractor is not properly registered or verified, and 0% where gross payment status applies.
When is the monthly CIS return due?
The return is generally due by the 19th following the end of the tax month.
Do new subcontractors need to be verified?
Contractors normally verify new subcontractors before payment so HMRC can confirm the deduction treatment.
Can a subcontractor reclaim CIS deductions?
CIS deductions count as tax paid in advance. How they are offset or reclaimed depends on the subcontractor’s legal form and tax position.
Does CIS apply instead of PAYE?
No. Employment status must be considered independently. An employee should be dealt with under PAYE rather than being treated as a CIS subcontractor.
Need CIS Support for Contractors or Subcontractors?
Arrange a review of your CIS registration, verification records, monthly returns, deduction credits or gross-payment-status position.