CIS Services, Construction Industry Scheme CIS
CIS Services - Comprehensive Support for Contractors and Subcontractors
Accurate Deductions. Full HMRC Compliance
What Is CIS, Construction Industry Scheme?
The Construction Industry Scheme is a set of rules issued by HM Revenue & Customs (HMRC) that governs how payments to subcontractors working in the UK construction industry are handled. Under the scheme, contractors must deduct money from subcontractors’ payments and pass it to HMRC. These deductions count as advance payments towards the subcontractor’s tax and National Insurance obligations.
Failure to comply with CIS regulations can lead to penalties, fines, and unnecessary tax overpayments – which is exactly why professional guidance from Mac&G Accounting is invaluable.
The Construction Industry Scheme (CIS) is a HMRC system where contractors deduct tax from subcontractors’ payments and pass it directly to HMRC.
- Standard deduction rate: 20%
- Higher deduction rate (unregistered subcontractors): 30%
- Gross payment status: 0% deduction (if approved)
The rules are strict, and mistakes are common.
We make sure you stay compliant and avoid costly penalties.
Who We Help with CIS Services
Are You a Contractor or Subcontractor?
Your obligations depend on your role.
If You Are a Contractor:
You must:
- Register for CIS
- Verify subcontractors with HMRC
- Deduct the correct amount of tax
- Submit monthly CIS returns
- Provide deduction statements
- Keep accurate records
If You Are a Subcontractor:
You may:
- Have tax deducted at 20% or 30%
- Apply for Gross Payment Status
- Reclaim overpaid tax
- Need help managing cash flow
We support both sides of the scheme.
Our CIS Services
We provide complete CIS management so you can focus on your projects.
CIS Registration
Getting started with CIS can feel overwhelming. We handle the entire registration process for you, ensuring you are correctly registered with HMRC as a contractor, subcontractor, or both. We also advise on whether you qualify for gross payment status, which allows subcontractors to receive payments without deductions.
- Registration as a contractor
- Registration as a subcontractor
- Application for gross payment status
- Guidance on partnership and company CIS registration
Subcontractor Verification
Before paying a subcontractor, contractors must verify them with HMRC.
We:
- Complete HMRC verification
- Confirm deduction rate
- Maintain proper records
This protects you from incorrect deductions and future penalties.
Monthly CIS Returns
Contractors must file a monthly CIS return with HMRC, detailing all payments made to subcontractors and the deductions applied. Late or inaccurate returns attract penalties. Late filing penalties start at £100 and increase quickly.
Our team prepares and submits your monthly CIS returns on time, every time, so you never have to worry about deadlines or errors.
- Accurate calculation of deductions
- Timely submission to HMRC
- Record-keeping and documentation
- Handling nil returns when no payments have been made
CIS Payment & Deduction Statements
Contractors must provide subcontractors with monthly deduction statements.We prepare compliant statements showing:- Gross amount paid
- Materials element
- Tax deducted
- Net payment
CIS Tax Refund For Subcontractors
Many subcontractors overpay tax through CIS deductions throughout the year. Mac&G Accounting identifies every opportunity to reclaim overpaid tax on your behalf. We prepare and submit your Self Assessment tax return, offsetting CIS deductions against your actual tax liability and securing your refund as quickly as possible.
- Identification of overpaid CIS tax
- Preparation and submission of Self Assessment returns
- Maximisation of allowable expenses and deductions
- Fast-tracked refund processing
Gross Payment Status Applications
If you qualify, you can apply for Gross Payment Status, meaning no CIS tax is deducted.
We:
- Check eligibility
- Prepare the application
- Handle HMRC communication
Assist if status has been withdrawn
CIS Payroll Integration
For contractors who employ both PAYE employees and CIS subcontractors, managing payroll can become complex. Mac&G Accounting integrates your CIS obligations with your payroll processing, providing a seamless, unified service that reduces administrative burden and minimises the risk of errors.
Common CIS Problems We Solve
If you are experiencing any of these issues, we can help.
- Incorrect deduction rates
- Missed monthly return deadlines
- HMRC penalty notices
- Lost Gross Payment Status
- Cash flow problems caused by over-deductions
- Confusion between CIS and PAYE
How It Works
Getting started with Mac&G Accounting is simple:
Get in Touch
Contact us via phone, email, or our online enquiry form for a free initial consultation.
We Assess Your Needs
We review your current CIS arrangements and identify any issues or opportunities.
We Take Care of Everything
From registration to monthly returns, tax refunds, and compliance, we manage your CIS obligations end to end.
You Focus on Your Business
With Mac&G Accounting handling your CIS, you can concentrate on what you do best – building.
Why Choose Mac&G Accounting for CIS?
Construction Sector Experience
We understand how the construction industry operates — materials, labour-only contracts, and subcontractor chains.
Proactive Compliance
We monitor deadlines and keep you informed.
Fixed Monthly Fees
No hidden charges. Clear pricing.
HMRC Representation
We deal directly with HMRC so you don’t have to.
Transparent, competitive pricing
No hidden fees – just honest, professional CIS service
Stay Compliant. Stay Paid.
CIS errors can cost you money and damage your reputation. Let Mac&G Accounting manage your CIS obligations professionally and efficiently.
Get Your Free CIS Consultation Today
Don’t let CIS compliance distract you from running your construction business.
Let the experts at Mac&G Accounting handle it all.
Call us today or send us a message through our contact page to arrange your free, no-obligation consultation.
Frequently Asked Questions (FAQ) About CIS Services
What does CIS mean in the UK?
CIS stands for the Construction Industry Scheme. It is a tax deduction scheme introduced by HM Revenue & Customs (HMRC) that applies to contractors and subcontractors working in the UK construction industry. Under CIS, contractors are required to deduct a percentage from payments made to subcontractors (typically 20% for registered subcontractors or 30% for unregistered subcontractors) and pass those deductions to HMRC. These deductions count as advance payments towards the subcontractor’s income tax and National Insurance. The scheme is designed to reduce tax evasion within the construction sector and ensure that tax is collected at source.
How do I get my CIS number?
To get your CIS number, you need to register with HMRC as a subcontractor (or as a contractor, depending on your role). You can register by calling the HMRC CIS helpline or by registering online through your HMRC Government Gateway account. To register, you will typically need your National Insurance number, your Unique Taxpayer Reference (UTR) number, and your personal or business details. Once your registration is confirmed, HMRC will assign your CIS details, and your UTR number effectively serves as your CIS identifier. At Mac&G Accounting, we handle the entire CIS registration process on your behalf, making it quick and hassle-free.
Is CIS different to self-employed?
Yes, CIS and self-employment are not the same thing, although they are related. Being self-employed is a tax status – it means you work for yourself rather than being employed by someone else, and you are responsible for paying your own income tax and National Insurance through Self Assessment. CIS, on the other hand, is a specific scheme that applies to self-employed individuals (and companies) working within the construction industry. If you are a self-employed subcontractor carrying out construction work for a contractor, you will likely fall under CIS, and the contractor will deduct tax from your payments before paying you. However, not all self-employed people are subject to CIS – it only applies to those working in construction. Similarly, you can be registered under CIS while also being employed (PAYE) in another role.
What happens if I don't register for CIS?
If you work as a subcontractor in the construction industry and you do not register for CIS, the contractor paying you is legally required to deduct tax at the higher rate of 30% instead of the standard 20%. This means you will take home significantly less money from each payment. Additionally, failing to register when required could attract attention from HMRC and result in compliance checks or enquiries. Registering for CIS is free, straightforward, and ensures you are taxed at the correct rate. Mac&G Accounting can register you quickly so you start benefiting from the lower deduction rate as soon as possible.
Can I claim back CIS deductions?
Yes, absolutely. CIS deductions are not a final tax – they are advance payments towards your overall tax liability. When you file your Self Assessment tax return at the end of the tax year, all CIS deductions are offset against your total income tax and National Insurance bill. If the amount deducted through CIS exceeds what you actually owe in tax, you are entitled to a tax refund from HMRC. Many subcontractors overpay through CIS, especially when they have allowable business expenses to claim. Mac&G Accounting specialises in maximising CIS tax refund claims, ensuring you receive every penny you are owed.
What construction work falls under CIS?
CIS covers most construction work carried out in the United Kingdom, including but not limited to: building and construction of new structures, alterations and repairs, extensions and renovations, demolition, installation of heating, lighting, drainage and electrical systems, painting and decorating, scaffolding, groundwork and civil engineering, and road building. However, certain activities are excluded from CIS, such as architecture and surveying, carpet fitting, manufacturing and delivering materials (without installation), and work on your own property. If you are unsure whether your work falls under CIS, Mac&G Accounting can advise you and ensure you are correctly classified.
What are the penalties for late CIS returns?
HMRC takes CIS compliance seriously, and penalties for late monthly CIS returns can add up quickly:
- £100 penalty for a return that is 1 day late
- £200 penalty for a return that is 2 months late
- £300 or 5% of the CIS deductions on the return (whichever is higher) for a return that is 6 months late
- A further £300 or 5% of the CIS deductions (whichever is higher) for a return that is 12 months late
These penalties apply per return, so if you are filing monthly and miss several deadlines, the costs can escalate rapidly. By choosing Mac&G Accounting to manage your CIS returns, you can be confident that every return will be filed accurately and on time, keeping your business penalty-free.