CIS tax return accountants
Straight-talking support for your construction business.
Why Timely CIS Returns Matter
The penalties for missing the deadline can be brutal. HMRC imposes a £100 penalty for being even one day late, rising to £200 after two months and £300 or 5 % of deductions once you’re six months late.
After twelve months the penalty can be another £300 or 5 % of deductions and may climb to a further £3,000. If you genuinely didn’t pay any subcontractors and forgot to tell HMRC, you can get the penalty cancelled, but you still have to explain yourself.
With deadlines every month, it’s no wonder busy construction firms struggle. Running your sites, chasing materials and making sure everyone gets paid leaves little time for navigating HMRC’s online portal. Yet the cost of getting it wrong is significant. Penalties, cash-flow headaches and the stress of an HMRC investigation.
That’s why having a specialist in your corner is not a luxury; it’s damage control.
Lets start with a chat
I take time to get to know you and your business
Peace of mind
You know your returns are accurate, on time and fully compliant. Penalties become a thing of the past.
Time Saved
No more wrestling with HMRC’s online portal at midnight. You focus on winning jobs, managing sites and looking after your team.
Better cash flow
We ensure the right deductions are made and reclaim any over-deducted tax quickly. For subcontractors, our expertise often means larger refunds because we spot expenses others miss.
Insight and planning
CIS interacts with payroll, VAT and corporation tax. Because we handle your wider accounts, we see the bigger picture. That helps you plan for tax bills, manage budgets and make informed decisions.
Who needs to file CIS returns?
As a contractor, you’re obliged to file a monthly return if you pay subcontractors for construction work. Even non-construction businesses must register if they spend more than £3 million a year on building works.
You must verify your subcontractors with HMRC before paying them and confirm whether they should be treated as employees; giving the wrong employment status on your return can lead to penalties up to £3,000.
A subcontractor working under CIS doesn’t file the monthly return, but it’s still their responsibility to file an annual self-assessment or corporation tax return to report income and claim back deductions. Contractors deduct 20 % from payments to registered subcontractors and 30 % if the subcontractor hasn’t registered. Subcontractors with gross payment status can be paid in full and settle their tax bill through their own returns.
If you don’t pay any subcontractors in a tax month you must notify HMRC that no return is due or file a nil return; failing to do so can trigger an unnecessary late-filing penalty. You can even apply for a period of inactivity if you know you won’t need subcontractors for a while.
How we help contractors with CIS returns
We aren’t just box-tickers; we’re partners in your construction business. Here’s how we lighten the load:
Registering and verifying subcontractors
We handle CIS registration for contractors and verify every subcontractor against HMRC’s system.
This ensures the correct deduction rate of 20% for registered subcontractors, 30% if they’re not, or 0 % for those with gross payment status. We also check their employment status
Accurate record keeping
CIS returns require the subcontractor’s name, verification number, gross payment, cost of materials, applicable tax rate and amount deducted.
We keep meticulous records so your return is complete and future HMRC queries are answered quickly.
Monthly filing and nil returns
We prepare and submit your return every month, using HMRC’s online service or approved software. If you didn’t use subcontractors that month, we file a nil return or request a temporary period of inactivity.
That way HMRC knows not to expect a return and you avoid automatic penalties.
Dealing with HMRC
If HMRC queries your return or raises a penalty, we handle the communication. We appeal penalties when appropriate and work to resolve issues quickly so you can keep doing what you do best.
The Results
You stay on top of your obligations without setting foot in an HMRC portal, and you avoid penalties that can eat into your profit margin. We aim to give you back the time to run your sites and grow your business.
Our
Services
Bookkeeping
Management Accounts
VAT
CIS Returns
Payroll
Auto-enrolment
Tax Planning
Year End Reporting
Corporation Tax Returns
Confirmation Statements
Self Assessment
Capital Gains Tax
Advisory Services
Frequently Asked Questions
What is the Construction Industry Scheme (CIS) and how does it work?
The Construction Industry Scheme (CIS) is an HMRC system designed to make sure tax and National Insurance are collected from contractors and subcontractors in the construction industry.
Contractors deduct tax from subcontractor payments at either 20%, 30%, or 0% for those with gross payment status, then send it to HMRC as an advance payment towards the subcontractor’s tax bill.
CIS applies to most building, demolition, and site preparation work, as well as certain large non-construction projects. Understanding CIS rules is essential to avoid costly mistakes and penalties, which is why many construction businesses choose specialist CIS accountants to handle the process.
Can I reclaim overpaid CIS tax?
Yes, subcontractors can reclaim overpaid CIS tax when they file their Self Assessment or Corporation Tax return.
If too much tax has been deducted during the year, HMRC will refund the difference after processing your return.
Limited companies can also reclaim CIS deductions through their monthly payroll scheme by offsetting them against PAYE and National Insurance liabilities. A CIS tax return accountant ensures every deduction is correctly recorded so you receive the maximum refund you’re entitled to.
Do I need to register for CIS if I only use subcontractors occasionally?
Yes, if you pay subcontractors for construction work, even on an occasional basis, you must register with HMRC as a contractor before making any payments.
The only exception is if the work falls outside CIS rules, such as purely professional services like architecture or surveying. Registering late or failing to register can result in HMRC penalties, so it’s best to set up your CIS registration as soon as you know you will be using subcontractors.
Can CIS apply to work outside the UK?
CIS usually applies to construction work carried out within the UK, but there are situations where it can apply to payments made by UK contractors for work abroad, depending on the tax residency and structure of the parties involved.
International projects can create complex tax situations, so specialist advice is essential to ensure you meet your obligations and avoid double taxation.