Construction Industry Scheme

Dealing with Construction Industry Scheme (CIS) compliance can sometimes feel as tricky as assembling scaffolding on a windy day, with the constant need to manage deductions, file monthly returns, and keep up with HMRC regulations. The fear of penalties for getting it wrong can add further unwanted stress.

But fear not, we’re here to take that burden off your shoulders. With years of experience helping clients in the construction industry, we specialise in making CIS compliance straightforward and hassle-free. Over the years, our team has helped hundreds of firms in this area, so you can relax knowing you're in good hands.

Our CIS Services

At Navigate Accountancy, we simplify CIS registration for contractors and subcontractors, ensuring you benefit from correct deduction rates and avoid those dreaded penalties. We handle the preparation and submission of your monthly CIS returns, manage deductions from subcontractor payments, assist eligible subcontractors in applying for gross payment status, and guide you through meeting HMRC's criteria.

For subcontractors, we understand that the end of the tax year brings the opportunity to reclaim CIS deductions that have been made throughout the year. Our team is well-versed in preparing subcontractors' tax returns to ensure you receive the maximum CIS refund you are entitled to. By accurately calculating your tax liability and filing your return promptly, we help you get your hard-earned money back without delay.

We also offer ongoing advice and support to help you understand your CIS obligations and stay compliant with regulatory changes, giving you peace of mind knowing that we've always got your back. With Navigate Accountancy, you can focus on your work while we take care of the numbers.

A construction worker on-site holding a tablet.

Frequently Asked Questions

The Construction Industry Scheme – or CIS for short – is a set of regulations established by HMRC in the UK. It governs how payments to subcontractors in the construction industry must be handled. Under CIS, contractors are required to deduct money from a subcontractor’s payments and pass it to HMRC. These deductions count towards the subcontractors' tax and National Insurance, spreading the payments out over time instead of all at once at the end of the tax year.

Both contractors and subcontractors working within the construction industry need to register for CIS. Contractors include businesses or individuals that pay subcontractors for construction work, while subcontractors are those who perform construction work for contractors. Registration is mandatory to ensure proper tax deductions are made.

If your construction work falls under any of the following categories, you do not need to register for CIS:

Scaffolding hire (not the labour itself)
Carpet fitting
Architecture and surveying
Work paid for by a charity, trust, governing body, or head teacher of a maintained school (via the local education authority)
Work on a property for your business use (excluding properties for sale or rent)
Construction contracts worth less than £1,000 (excluding materials), though you must call the CIS helpline to request an exemption)

Registration for CIS can be done online through the HMRC website. Contractors and subcontractors must create a Government Gateway account if they do not already have one. During registration, contractors will need to provide their business details, while subcontractors will need their National Insurance number and Unique Taxpayer Reference.

Failing to register for CIS can result in significant penalties and higher tax deductions. Unregistered subcontractors may have deductions taken from their payments at a higher rate of 30%, compared to the standard rate of 20% for registered subcontractors. Contractors who fail to register may also face fines and be required to pay backdated deductions.

At Navigate, we can assist with various aspects of CIS compliance, including: