Contractor and subcontractor CIS returns, monthly HMRC submissions, verification, deduction statements, domestic reverse charge VAT, and year-end reconciliation — delivered by an accountant who spent 8+ years managing the finance function of a £30m+ construction business.
CIS affects both sides of the construction supply chain. We manage the obligations on both — whether you are making CIS deductions from subcontractors, having deductions made from your own payments, or both.
Every new subcontractor verified with HMRC before first payment. Gross, standard (20%), or higher (30%) deduction rate confirmed and applied. Verification reference recorded and retained. No deduction made without verification.
Monthly return filed with HMRC by the 19th of each month covering all subcontractor payments made in the prior month. Late filing penalty: £100 per month for 1–2 months, rising to £300 per month thereafter. We file before the deadline, every month.
Monthly payment and deduction statement issued to each subcontractor showing gross payment, materials deduction, and CIS deduction applied. Required by HMRC — subcontractors need these to offset against their own tax liability.
CIS deductions suffered by your business on payments from contractors offset against your monthly PAYE/NIC liability via the EPS. This reduces — sometimes eliminates — the monthly PAYE payment. Incorrectly handled, businesses pay HMRC too much and wait months for a refund.
DRC applies to most CIS supplies between VAT-registered businesses (subject to end-user and intermediary supplier exceptions). We identify where DRC applies, ensure invoices are correctly structured, and handle the VAT accounting on both sides of the transaction.
Gross Payment Status (GPS) allows subcontractors to receive full payments without CIS deduction — qualifying criteria include turnover thresholds (£30,000 sole trader / £100,000 company) and a clean HMRC compliance record. We assess eligibility and manage the application.
HMRC sets three possible CIS deduction rates. The rate applied to each subcontractor depends on their verification result — which is why verification before first payment is not optional.
The CIS experience at S.K.E. comes from managing the full finance function of Woodford Heating & Energy Ltd — a £30m+ construction business — for eight years as Accounts Manager, Financial Controller, and Finance Systems Manager. This is not textbook CIS knowledge. It is working CIS knowledge, built across hundreds of subcontractor relationships, monthly return cycles, and HMRC compliance reviews.
CIS applies to contractors who carry out construction operations as defined by the Finance Act 2004 — broadly, any work on the structure of a building. Businesses outside the construction industry who occasionally have construction work done are "deemed contractors" if they spend over £3 million on construction in any 12-month period. Most SMEs outside construction will not be affected, but if there is any doubt we can confirm your status.
Verify all current subcontractors immediately and apply the rate HMRC confirms. For past unverified payments, the contractor is technically liable for the deduction that should have been made — but HMRC's practice is typically to collect from the subcontractor rather than the contractor if the subcontractor has declared the income. We manage the correction process and advise on any disclosure required.
Yes, provided you meet the compliance and turnover criteria. As a sole trader, your net construction turnover must exceed £30,000 per year. As a company, £30,000 per director or £100,000 overall (whichever is higher). HMRC also checks your full compliance history — PAYE, VAT, Self Assessment, and Corporation Tax must all be current. We assess eligibility and manage the application, including any supporting documentation HMRC requests.
Book a free consultation. We will review your current CIS compliance position, identify any gaps in your verification or return history, and give you a fixed monthly fee to take CIS off your plate.
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