Everything you need to know about specialist CIS accountants
Do you work within the Construction Industry? If so, we can help your business as we’re a specialist CIS accountants for tax and business support.
As a subcontractor, being CIS registered can increase cashflow and benefit you in many other ways, as the tax is deducted at source. This applies only to the labour element, not materials, and HMRC has strengthened rules around verification and compliance.
The deductions are seen as advance payments towards the subcontractor’s tax and National Insurance that will be owed at the end of the tax year. HMRC may now review gross status more frequently under updated CIS 340 guidance.
This avoids a one-off balloon payment being due at the end of each year. It also means that you only have the remaining balance to settle, if any.
If you are a contractor, you must be registered under CIS. You are seen as a contractor if you pay subcontractors for labour that relates to construction work. Businesses spending over £3m on construction in any rolling 12‑month period may now be classed as ‘deemed contractors’.
What Is CIS?
CIS stands for Construction Industry Scheme. Under the scheme, there are contractors and subcontractors.
Contractors deduct a portion of the money from a subcontractor payment to then pay to HMRC. This can be deducted at 0%, 20%, and 30% depending on the sub-contractor.
To determine CIS tax deductions, verify each subcontractor via HMRC’s website or your accounting software. HMRC removed phone‑based correction routes in 2026 – so all corrections must now be made online.
To be able to verify a subcontractor, the minimum information required is their trading name & their UTR in which they verified themselves with HMRC.
- 0% deduction means the subcontractor is registered as Gross Status, where contractors aren’t allowed to deduct CIS tax from them.
- 20% deduction means the subcontractor is registered at the standard deduction rate per HMRC.
- 30% deductions mean the subcontractor has not yet verified themselves with HMRC, and so they aren’t recognised and are seen as an unknown subcontractor within the Construction Industry Scheme.
HMRC added new guidance in 2026 covering agencies, off‑payroll workers and public bodies within CIS verification rules.
CIS deductible means you are a contractor and must pay the tax element that you have deducted for the payment to the sub-contractor.
CIS Suffered means you are the sub-contractor and you have received a payment net of any deductions.
RELATED: 5 Benefits Of Using Xero For CIS
When And How Often To Submit Your CIS?
CIS submissions are to be sent to HMRC monthly.
CIS returns for CIS stopped and EPS submissions for CIS suffered are due to HMRC by the 19th of every month.
The period you are reporting for will be the 6th of the month to the 5th of the next month.
From 6 April 2026, mainstream contractors must file nil returns again when no subcontractor payments are made.
For CIS figures from April 6 to May 5, submit and pay by May 19.
Does Your CIS Affect Your PAYE Due?
Your CIS doesn’t directly affect your PAYE. However, it does affect how much you pay.
If you stop CIS from your subcontractors, this amount is due to be paid back to HMRC every month, so this can be added to your PAYE figure that is already due.
If you suffer CIS, deduct the monthly amount from your PAYE due for that month.
Lastly, if you are a contractor and a subcontractor, which means you stop and suffer CIS, then you can add your stopped figure to your PAYE figure, and then deduct how much CIS that you have suffered for the period and this is the amount that will be due.
Sometimes, if you suffer more than the total of your CIS stopped plus your PAYE, then you will be in credit for the related period and then will have nothing due to pay. More info in regards to paying CIS or PAYE can be found with HMRC: www.gov.uk/pay-paye-tax
Do You Have To Be Registered For CIS?
Contractors must register under the CIS Scheme. Subcontractors do not have to, but will face 30% deductions if they don’t.
HMRC also clarified in 2026 that employment status for CIS purposes is determined under common law.
More info about this can be found on the Government website: www.gov.uk/what-is-the-construction-industry-scheme
What Next?
Whether you are a contractor or subcontractor, we hope this article has helped you to understand the steps you need to take to become CIS registered.
If you need any further help on how to register for CIS, or you’re looking for a CIS accountant who knows your industry inside out, please get in touch – we’ll be happy to help.
