Construction Industry Scheme (CIS) Accounting Service
Working in construction can be demanding. The last thing you need is confusion around VAT tax, CIS deductions, or paperwork. That’s where our CIS accounting service comes in. Whether you’re a contractor or subcontractor, staying compliant with HMRC rules under the Construction Industry Scheme is a must. We help with everything: registering for CIS, handling monthly returns, sorting deduction statements, and submitting your tax return. With our help, you can stop worrying about the details and focus on your work.
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Who Needs to Register for CIS?
Anyone working in the UK construction industry may need to register for the Construction Industry Scheme. This includes contractors and subcontractors. Contractors must register with HMRC before hiring subcontractors. Subcontractors can also register to avoid higher CIS deduction rates. If you’re self-employed or operate as a sole trader in construction, registering is key. Not sure if you qualify? We’ll guide you through the process. Our expert CIS accountants help make registration fast, simple, and compliant.
What Does CIS Cover?
The CIS applies to most construction work done in the UK. It covers building, demolishing, repairing, decorating, and installing systems such as heating, lighting, or water. Contractors are required to deduct money from a subcontractor’s payment and pass it to HMRC. This deduction counts as advance tax. It’s important to know what is and isn’t included, as getting it wrong can lead to penalties. Our accountant team can help you understand what parts of your work fall under the Construction Industry Scheme.
HMRC defines construction work as:
According to HMRC, construction work includes jobs such as building roads, bridges, or houses. It also includes work like fitting windows, installing drainage systems, or laying foundations. Even some groundwork or preparation tasks count. If you do this kind of work, you might need to register for CIS. Contractors must deduct a set amount from each subcontractor payment. These rules apply to limited companies, sole traders, and any self-employed worker doing construction work in the UK.
For the purposes of the CIS scheme, HMRC states this includes:
Site preparation and groundwork: Tasks like clearing sites or setting up access routes before building starts.
Building work and repairs: Anything from putting up walls to fixing broken windows in existing buildings.
Installation of systems: Adding things like heating, lighting, power, or ventilation systems to buildings or homes.
Demolition or dismantling: Pulling down old structures or removing parts of them during renovations.
Decorating and finishing work: Painting, tiling, or adding other finishing touches to a project.
Understanding what’s included helps subcontractors and contractors stay compliant and avoid HMRC trouble.
The Construction Industry Scheme (CIS) Deduction Rates
HMRC sets specific deduction rates for CIS. These rates decide how much money contractors must deduct from each payment to a subcontractor. Staying on top of these rates is important. If you’re a subcontractor, being properly registered helps reduce how much is taken from your pay. Contractors, on the other hand, must keep accurate records and report all deductions. Our CIS accountants help both sides stay on track, ensuring all payments and deductions follow the rules.
Gross Payment Status
Gross payment status is a special status given to subcontractors who meet certain rules. It allows them to receive full payments without any CIS deductions. To qualify, you must show that you pay your tax and national insurance on time, keep good records, and work mostly in the UK. This status helps improve cash flow. It’s useful if you’ve been self-employed for a while and want to manage your tax directly. We can help you apply and stay eligible.
The CIS Deduction rates are:
CIS uses three deduction rates based on registration status:
20% Standard Rate: This applies to subcontractors who are registered for CIS with HMRC. The contractor deducts 20% from each payment.
30% Higher Rate: If a subcontractor is not registered for CIS, contractors must deduct 30% of each payment. This is a lot, so it’s better to register.
0% Gross Payment Status: Subcontractors with gross payment status don’t have deductions taken. They still pay tax, but directly, not through CIS.
Knowing your rate helps with budgeting and planning your finances.
Why Choose our CIS Service?
Our CIS accounting service is designed to remove stress and save time. We understand how the construction industry works, and we know the common mistakes people make. That’s why we offer clear advice, simple tools, and full support. Whether you need to register for CIS, manage deductions, or file monthly returns, we’ll handle it. Our bookkeeping system keeps you organised, and we’re always ready to answer questions. With our help, you can stay compliant and focus on what matters—your work.
Contractors
As a contractor, you’re required to handle CIS tasks properly. That includes verifying subcontractors, making the right deductions, and filing monthly returns with HMRC. We’ll help with every part of the process so you can focus on running your jobs. Here’s what we cover:
HMRC registration:
We help contractors register for CIS with HMRC quickly and without errors. It’s the first step to staying compliant. With our support, the process is simple and stress-free.
Subcontractor verification:
Before paying a subcontractor, contractors must check their registration status. We handle this for you. It ensures you deduct the right amount and meet all HMRC rules.
Payment management:
Our system keeps track of every payment to your subcontractors. This includes the CIS deductions and how much they should receive. Everything is clear and recorded.
Deduction statements:
Every subcontractor must get a deduction statement. We prepare and send these on your behalf. It shows what was paid, what was deducted, and why.
Record keeping:
Good bookkeeping is key. We keep full records of all subcontractor payments and CIS deductions. This helps if HMRC ever needs to review your accounts.
Submissions:
We file your monthly returns with HMRC on time, every time. This includes all the CIS deductions for that month. No missed deadlines, no fines.
Subcontractors
Subcontractors need support too. If you’re a self-employed subcontractor, staying on top of tax and CIS rules can be tricky. We help you manage it all.
Employment status:
Understanding your work status matters. Are you truly self-employed? Are you being taxed correctly? We help clarify your position under HMRC rules.
Verification:
Once registered for CIS, we help you confirm your details with HMRC. This allows contractors to verify you and deduct the correct CIS rate.
Record keeping:
We help you track all payments received and deductions made. Good records make your tax return easier and help avoid errors.
Tax return:
At the end of the tax year, you still need to file a self-assessment. We handle your tax return, making sure every deduction is counted and you claim what you’re owed.
CryptoTaxation – Your Trusted CIS Accountants
We know CIS inside and out. Our team works with contractors and subcontractors across the UK. We help you register, stay compliant, and avoid fines. Our accountants understand the construction industry and the real problems people face. Whether you need help with a tax return, deduction statement, or bookkeeping, we’re here. We take pride in offering clear advice, fair pricing, and strong support. Choose CryptoTaxation as your trusted CIS accountants—and let us take care of the rest.
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FAQs
Is CIS different from self-employed?
Yes, CIS is different. Being self-employed means you work for yourself and manage your own taxes. CIS is a special scheme for people working in construction. If you’re self-employed and working under CIS, you still have to do a tax return. But your payments may be reduced through CIS deductions before you even get paid. You still pay tax and national insurance, but in a different way.
What is the difference between CIS and PAYE?
PAYE is used when you’re employed by a company. The employer takes tax and national insurance from your wages. CIS is for subcontractors in the construction industry. Here, the contractor deducts tax before paying the subcontractor. It’s similar to PAYE in that way, but CIS is for people who are technically self-employed, not employees. It helps HMRC collect tax earlier and ensures compliance.
Do all subcontractors have to be CIS registered?
No, but it’s a smart move. If you don’t register, your contractor must deduct 30% from your payment. If you’re registered, that rate drops to 20%. Registering with HMRC for CIS shows you’re serious and helps you keep more of your money. If you qualify for gross payment status, you may avoid deductions altogether. Our CIS accountants can help you register fast.
Does CIS apply to sole traders?
Yes, it does. Many subcontractors are sole traders. If you’re self-employed and do construction work, CIS probably applies to you. You’ll need to register with HMRC, track your payments, and file a self-assessment tax return. You might also need to pay national insurance. We’ll guide you through each step, make sure you stay compliant, and help you claim back any extra tax paid.
