Construction Industry Scheme (CIS) Services
We help UK construction businesses manage CIS registrations, deductions, returns, and HMRC compliance — with expert support tailored to your trade, project size, and business structure.
The Construction Industry Scheme (CIS), administered by HMRC, applies to most construction work carried out in the UK. Under this scheme, contractors must deduct tax from payments made to subcontractors and pass it to HMRC. These deductions act as advance payments toward the subcontractor’s tax and National Insurance.
Whether you’re a contractor hiring subcontractors or a subcontractor working on multiple sites, understanding and managing your CIS responsibilities is critical. The scheme involves regular monthly filings, tax deductions, payment statements, and real-time verification — all with strict penalties for non-compliance or delays.
At Berkeley McROCK Shepherd, we deliver a complete CIS service for both contractors and subcontractors — including registration, HMRC verification, monthly filings, deductions management, software integration, and strategic support. We work with builders, developers, civil engineers, electricians, plumbers, and other trades to ensure your business stays compliant, avoids penalties, and maximises eligible tax relief and refunds.
Who We Help With CIS
• Construction Companies Hiring Subcontractors
• Developers Managing Project-Based Payments
• Sole Traders Working Under CIS
• Limited Companies Receiving CIS Payments
• Businesses Acting as Both Contractor and Subcontractor
• Firms with Changing Status Across Projects
• Non-Construction Businesses Meeting CIS Threshold
• Residential and Commercial Developers
• Electricians, Plumbers, Roofers, Painters
• Site-Based Independent Professionals
• Managing Multiple Clients with CIS
• Needing Technical Filing, Setup & Advisory Support
Why Choose Us for CIS
Reliable, industry-informed CIS support for contractors and subcontractors alike. Here’s what makes us the right partner:
CIS Experts You Can Rely On
Our team understands the construction sector inside out — from HMRC expectations to day-to-day challenges on site. We ensure your CIS duties are met with precision.
Contractor & Subcontractor Support
We serve both sides of the scheme. Whether you're managing payments or receiving them, we guide you through deductions, returns, and compliance with ease.
Full Monthly Management
We handle everything — subcontractor verification, monthly CIS300 submissions, deduction statements, and deadline reminders — so you don’t miss a thing.
Gross Payment Status Assistance
We prepare and submit applications, monitor your compliance standing, and help appeal rejections — ensuring you retain or gain your full-payment status.
HMRC Registration & Liaison
We manage all CIS registrations and communicate with HMRC on your behalf for smooth onboarding, ongoing updates, or dispute resolution.
Late Return & Penalty Resolution
Missed a submission? We act fast to limit exposure, correct errors, and negotiate with HMRC to reduce penalties wherever possible.
Software-Integrated Compliance
From Xero to Sage to QuickBooks — we embed CIS into your accounting workflow to track deductions, payments, and submissions all in one place.
Ideal for Multi-Project Builders
Juggling multiple subcontractors and sites? We bring structure to your CIS records, giving you clarity and confidence even at scale.
Perfect for Sole Traders & SMEs
If you're a subcontractor unsure how to claim your CIS refund — or a contractor overwhelmed by returns — our fixed-fee services are built for you.
Beyond CIS – Full Support Available
Need help with payroll, VAT, or your annual tax return? Our team covers all aspects of compliance and advisory for the construction sector.
Subcontractors can register to receive deductions at 20% instead of the default 30%. We manage this process and support with:
CIS registrationunder your UTR number
Applications for gross payment status, which allows you to receive payments in full with no deductions
Claiming refundson overpaid tax via Self Assessment
Tracking CIS statements from multiple contractorsto ensure full credit is accounted for
Adjusting business records to match deduction statements for compliance
Resolving discrepancies with HMRC if incorrect deductions are made
We also support limited company subcontractors in reclaiming CIS deductions through their company PAYE account — a different route than sole traders.
To apply for gross payment status, a subcontractor must:
Operate in the UK construction industry
Have a business bank account
Prove at least 12 months of tax compliance (timely returns and payments)
Meet HMRC’s turnover thresholds (at least £30,000 per director for companies)
Have a good tax record (no serious infractions)
We manage the full application process and renewals — and help challenge HMRC if your status is withdrawn or refused.
Detailed CIS Services
Contractor Support
Contractors must register with HMRC before engaging subcontractors. We help you register quickly and properly, then manage your monthly obligations, which include:
- Verifying each subcontractor with HMRC to determine their deduction status
- Deducting the correct CIS tax (usually 20% if registered or 30% if not)
- Submitting a CIS300 returneach month detailing all subcontractor payments and deductions
- Issuing deduction statementsto every subcontractor — a legal requirement
- Reporting nil returns when no subcontractors were paid
- Avoiding penalties for late, missing, or inaccurate submissions
- Maintaining compliant digital records and backups for HMRC audit trail
We also advise on whether your business qualifies as a “deemed contractor” — even if construction isn’t your main activity.
We guide businesses on whether their work falls under CIS. HMRC defines construction operations broadly, including:
- Building and site preparation
- Alteration, repair, or demolition
- Installation of systems (heating, lighting, power, water, ventilation)
- Painting, decorating, groundwork, drainage
- Scaffolding, paving, and structural work
Work exempt from CIS includes surveying, architectural design, material delivery, hire of machinery without labour, and office-based admin work. We help clarify grey areas to prevent compliance errors.
We ensure your CIS obligations are fully synced with your bookkeeping and payroll. We integrate CIS functionality into:
- Xero– through payroll and project modules or third-party plugins
- Sage 50cloud– native CIS tracking with RTI and VAT links
- QuickBooks– CIS deduction setup, submission, and reconciliation
We set up automated workflows, deduction tracking, monthly reporting, and VAT matching — so you can manage CIS, payroll, and accounts from one system.
What We Offer
Our CIS consultancy covers every aspect of compliance, process, and integration, including:
CIS registration for contractors and subcontractorswith HMRC
Monthly CIS returns (CIS300)submission to HMRC by the 19th of each month
HMRC subcontractor verificationto determine correct deduction rates (20% or 30%)
Payment and deduction statementsissued to each subcontractor
Applications for gross payment statusand assistance with renewals
Overpayment claims and Self Assessment tax returnsfor subcontractors
CIS data integration with accounting software, including Xero, Sage, and QuickBooks
Correction of past CIS errors, late submissions, and appeals
Audit support, HMRC dispute resolution, and compliance reviews
We ensure you meet your legal obligations — and we make CIS work smoothly inside your business.
FAQs
What is CIS?
A tax scheme requiring contractors to deduct money from payments to subcontractors and pay HMRC directly, serving as advance tax.
Who must register for CIS?
Contractors (those hiring subcontractors for construction) must register. Subcontractors can register voluntarily to reduce deduction rates from 30% to 20%.
What is the CIS deduction rate?
20% for registered subcontractors, 30% if unregistered. 0% if you have gross payment status.
Can a business be both a contractor and subcontractor?
Yes — and must meet obligations for both roles separately.
When is the CIS return due?
Monthly by the 19th of each month following the tax month end (6th–5th).
What happens if I miss a CIS return deadline?
Automatic penalties apply: £100 for 1 day late, escalating monthly, up to £3,000+ depending on delays and volume.
What’s a CIS300?
The monthly return contractors submit to HMRC listing all subcontractors paid and deductions made.
What is a payment and deduction statement?
A document contractors must issue to each subcontractor monthly showing the gross amount, deduction, and net payment.
How do subcontractors reclaim CIS tax?
Sole traders via Self Assessment; companies via their PAYE system or Corporation Tax return.
What is gross payment status and how do I qualify?
HMRC-approved status allowing subcontractors to be paid in full. You must have good tax compliance and sufficient turnover.
Do I still need to submit a return if no subcontractors were paid?
Yes — a nil return is mandatory unless you’ve deregistered or paused your scheme.
Do I need to verify subcontractors each time?
No. Once verified, ongoing work with that subcontractor does not require re-verification unless there’s a status change.
How do I verify subcontractors?
Through HMRC’s online service or via compatible accounting software.
Is CIS different from PAYE?
Yes. CIS is for construction subcontractor payments; PAYE is for employee wages. Some businesses use both.
Can Berkeley McROCK Shepherd manage my entire CIS process?
Yes — we handle registration, verification, filings, software integration, gross status applications, and year-end support.