Construction Industry Scheme support for contractors and subcontractors

Who this service is for

This service is for construction businesses in and around Birmingham on either side of the scheme: contractors who pay subcontractors and carry the monthly filing burden, and subcontractors who have deductions taken from their payments and want them accounted for correctly. It suits sole traders, partnerships and limited companies in the trade, whether you are newly registering for CIS or have been in the scheme for years and simply want the administration handled cleanly.

How we can help

CIS is a scheme where the routine matters: verify correctly, deduct correctly, file on time, and keep records that reconcile. We take on that routine and keep it running month to month, so contractors meet their obligations and subcontractors recover what they are due without a year-end surprise. We also keep the boundaries clear: CIS does not replace an employment-status assessment, and CIS deductions are not a subcontractor’s final tax liability.

For contractors

• Registering you as a contractor under CIS
• Verifying subcontractors with HMRC before they are paid
• Determining the appropriate deduction treatment for each subcontractor
• Preparing and filing monthly contractor returns
• Dealing with nil-return considerations and periods of inactivity
• Producing payment and deduction statements for your subcontractors
• Keeping the records the scheme requires and reconciling them
• Managing the interaction between CIS and your payroll
• Correcting errors on previous returns where they arise

For subcontractors

• Reviewing the deduction statements you receive for accuracy
• Recording CIS income and deductions in your accounts
• Reporting CIS income and deductions on your tax return
• Handling limited-company CIS offset against PAYE and reclaiming any excess
• Reconciling deductions suffered with HMRC’s records so the figures agree

What’s included

• CIS registration for contractors and subcontractors as appropriate
• Subcontractor verification and correct deduction treatment
• Monthly contractor returns, including nil returns where relevant
• Payment and deduction statements issued to subcontractors
• Recording, reconciling and reporting CIS deductions on both sides
• Limited-company offset and repayment support for subcontractors
• Routine HMRC correspondence relating to the scheme

How it works

1. We confirm your role under the scheme and register you if you are not already.
2. We agree a monthly rhythm for verification, returns and statements so nothing slips.
3. Each month we process the figures, file the contractor return and issue statements as needed.
4. We reconcile deductions on your records against HMRC’s so any discrepancy is caught early.
5. At year end we bring CIS through to the tax return or company offset and sort any repayment.

What we’ll need from you

From contractors we need details of the subcontractors you engage, the amounts paid and any materials element, along with timely notice of new subcontractors so they can be verified before payment. From subcontractors we need the deduction statements you receive, records of your income, and your company payroll details where an offset applies. Prompt, monthly information is what keeps CIS penalty-free. The scheme does not wait for a year-end catch-up.

Common mistakes to avoid

• Treating CIS treatment as if it settles whether a worker is employed or self-employed
• Assuming the deductions taken are the subcontractor’s final tax bill
• Paying a subcontractor before verifying them and applying the wrong deduction rate
• Missing a monthly return, or ignoring a nil month, and triggering penalties
• Failing to issue payment and deduction statements to subcontractors on time
• Letting deductions suffered drift out of line with HMRC’s records, delaying repayments

Serving Birmingham and the Midlands

Construction work rarely keeps you at a desk, so we run CIS for contractors and subcontractors across Birmingham and the West Midlands through cloud accounting, with figures updated as jobs are paid. Where it helps, we can arrange a meeting to set up the monthly process.