CIS Returns

If you work in the construction industry, you may already be aware of the statutory requirement to have CIS deductions made at source – either for yourself or for sub-contractors that work for you. We can help by completing the calculations on your behalf, so you are confident you are paying or claiming the correct amount of tax at the year-end.

The Construction Industry Scheme (CIS) is a tax deduction scheme involving tax being deducted at source from payments related to construction work. CIS will apply to payments made by a contractor to a subcontractor. This tax applies to almost everyone working in the construction industry. The CIS (Construction Industry Scheme) covers most types of construction work done in the UK, including, for example, site preparation, repairs, decoration and demolition. Therefore, most kinds of general contractors need to register for CIS.

If you are registered with HMRC as a contractor, you must file a Construction Industry Scheme (CIS) Return every month.
The CIS Return confirms which sub-contractors you have paid in the previous month and how much CIS tax was deducted. You then need to pay over the total CIS deducted to HMRC by the 19th of the following month. CIS tax is only deducted from the labour element of a subcontractor's invoice. Therefore, if they have charged you for materials or VAT, these elements are removed before your CIS tax calculation is made.