CIS and accounting for construction businesses
Verification, monthly returns, deduction statements and refunds, without the guesswork.
Construction has more moving parts than most trades: CIS deductions, the VAT reverse charge, retentions, cash retained on long jobs and subcontractors who need paying on Friday whatever else is happening.
We look after contractors and subcontractors across groundworks, fit-out, electrical, plumbing, roofing and civils.
How construction companies stay CIS compliant
Every subcontractor is verified with HMRC before payment. That determines whether you deduct 20 per cent, 30 per cent for unverified subcontractors, or nothing at all for those with gross payment status. Deductions apply to labour only, so materials, plant hire and VAT must be stripped out of the payment first.
By the 19th of each month, the return covering the tax month to the 5th must be filed, even when nobody was paid, in which case a nil return is required. Statements go to each subcontractor. Contractors who employ staff pay CIS deductions across with their PAYE.
- Verification and rate confirmation before payment is made
- Correct labour and materials split on every application and invoice
- Monthly returns filed on time, including nil returns
- Subcontractor deduction statements issued each month
- Gross payment status applications and compliance reviews
The VAT reverse charge, in plain terms
Where you supply construction services to another VAT registered business that is not the end user, you do not charge VAT. The customer accounts for it instead. Your invoice must say so, and your cash flow changes because that VAT no longer sits in your account for a quarter. Getting this wrong in either direction creates an assessment.
Our process
How this works with us
- Step 01
Review
We check your CIS position, subcontractor records and VAT treatment.
- Step 02
Monthly routine
Verify, calculate, file, issue statements. Same dates every month.
- Step 03
Refunds
CIS suffered reclaimed or offset as early as the rules allow.
- Step 04
Job level view
Optional reporting by contract so you know which jobs are earning.
Questions
Frequently asked
Often taken alongside
Talk to an accountant who understands your business
A 20-minute call, no charge and no obligation. We will look at where you are, what HMRC expects next and what a sensible fixed fee looks like.