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Specialist Sectors
What Is the Construction Industry Scheme (CIS)?
The Construction Industry Scheme (CIS) is a tax deduction scheme operated by HMRC, where contractors deduct money from payments to subcontractors and forward it to HMRC as advance payments towards tax and National Insurance.
At YRF Accountants, we make CIS compliance easy — whether you're a contractor or subcontractor — ensuring you stay on the right side of HMRC while maximising your income.
Who Needs to Register for CIS?
You must register for CIS if you are:
- A contractor hiring subcontractors
- A subcontractor working in the construction industry (builders, electricians, plumbers, etc.)
- Operating as a sole trader, partnership, or limited company
Failure to register means you'll face a 30% tax deduction instead of the standard 20%.
CIS Deductions Explained
Contractors must deduct tax from subcontractors’ invoices before making payments:
- 20% deduction for registered subcontractors
- 30% deduction for unregistered subcontractors
- 0% deduction for those with gross payment status
Only the labour element (excluding materials and VAT) is subject to deduction, and all deductions must be backed by CIS statements.
Monthly CIS Returns for Contractors
Contractors must file monthly CIS returns to HMRC that include:
- All payments made to each subcontractor
- Subcontractor verification status
Deadlines: 19th (by post) or 22nd (online) of each month. Late or incorrect submissions may result in hefty fines.
Claiming CIS Refunds for Subcontractors
Subcontractors often overpay tax. By filing your Self Assessment tax return correctly, you can reclaim these overpayments, especially if:
- You had 20-30% deductions throughout the year
- You have allowable expenses
- Your income is below higher tax thresholds
YRF Accountants will ensure your return is accurate and complete to help you claim what’s rightfully yours.
Allowable Business Expenses You Can Claim
Claim back more by deducting legitimate expenses like:
- Tools and equipment
- Protective gear (helmets, boots, high-vis)
- Mileage or vehicle expenses
- Insurance (public liability, etc.)
- Accountant/professional fees
- Phone and internet costs
- Relevant training courses
- Unreimbursed materials
- Home office use
We help you track and submit expenses accurately.
Gross Payment Status – Avoid CIS Deductions
If your tax affairs are up to date and you meet turnover thresholds, you can apply for Gross Payment Status and get paid in full. We help with:
- Eligibility checks
- HMRC application process
- Ongoing compliance to retain the status
Our Full CIS Services Include:
- CIS registration (for both contractors & subcontractors)
- Monthly CIS returns & subcontractor verification
- Preparation of CIS deduction statements
- Self Assessment returns and tax refund claims
- Expense management and advisory
- Gross Payment Status applications
- HMRC enquiry support
Serving Bolton, Manchester & the UK
From our Bolton and Manchester offices, YRF Accountants serve contractors and subcontractors across the UK with proactive, reliable CIS support tailored to your needs.
Specialist Services for the Construction Industry
Whether you’re a contractor, subcontractor, or construction firm, our tailored services are crafted to meet the industry’s challenges:
CIS Compliance
- HMRC Registration
- Accurate Deductions & Returns
- Subcontractor Verification
Project-Based Accounting
- Job Costing & Budget Planning
- Cash Flow Forecasting
Tax Planning & Compliance
- R&D Tax Credits for innovation
- VAT Management for construction-specific schemes
- Tax efficiency and minimising liabilities
Payroll Services
- Real-Time PAYE Submissions
- Subcontractor Payment Management
- Workforce Reporting
Financial Advisory
- Business Growth Strategy
- Project Loan Support
- Exit Planning & Succession
Why Choose YRF Accountants?
- Deep industry knowledge in construction accounting
- Fully customised services and advice
- Full CIS and VAT compliance support
- Proactive strategies for tax savings and growth
Common Challenges We Solve
- CIS deductions and filing headaches
- Project-based cost tracking
- Missing R&D tax opportunities
- Complicated payroll needs
Book Your Free CIS Consultation
Don't let errors or missed opportunities cost your construction business. Let our expert team handle your CIS and construction accounting from start to finish.
Book Your Free CIS Review
Call us: 01204 938696
Require more information?
If you would like more information or would like to speak to us direct then call us on 01204 938696. Or if you would prefer, ask us a question online.