Overview
CIS applies to certain construction payments. Contractors verify subcontractors, calculate deductions where required, provide statements and file monthly returns. Subcontractors must keep deduction statements and include the income and deductions in their tax records.
Who this applies to
Construction contractors, deemed contractors and subcontractors carrying out qualifying work.
Key points
- Check whether the work and the business relationship fall within CIS.
- Verify subcontractors before the first payment.
- Separate materials and other permitted amounts correctly.
- File a nil return or tell HMRC where required rather than ignoring the period.
Important dates and deadlines
The contractor’s monthly return is due by the 19th after the end of the CIS tax month. PAYE and CIS deductions are paid with the employer’s PAYE liability by the applicable electronic or postal deadline.
Practical checklist
- Register in the correct capacity.
- Verify each subcontractor.
- Keep contracts, invoices and payment calculations.
- Issue monthly deduction statements.
- File returns and pay deductions on time.
Frequently asked questions
Does CIS decide employment status?
No. Employment status must still be considered separately.
Are all construction-related payments subject to deduction?
No. The scope and calculation rules should be applied to the actual work and payment.
How Accountants4All can help
Support matched to your circumstances
Accountants4All can register contractors and subcontractors, verify subcontractors, prepare returns and reconcile CIS deductions.
Official sources and further reading
This page is general guidance and does not create an adviser/client relationship. Tax rules and official guidance can change. Use the official sources above and obtain advice based on your circumstances.
Read the full tax disclaimer