CIS Tax Returns

CIS is an HMRC system that requires contractors to deduct tax from payments made to subcontractors in the construction industry and report these deductions monthly.

All contractors and subcontractors working in construction must register. Contractors are responsible for deducting and reporting tax, while subcontractors have tax deducted from their payments.

The CIS Return must be submitted to HMRC by the 19th of each month following the tax month (which runs from the 6th to the 5th).

A contractor can be an individual, partnership, or limited company that pays subcontractors for construction work. It’s defined by your role in the payment chain & not just your business type.

A subcontractor is anyone (individual or company) who carries out construction work and receives payment from a contractor. Subcontractors have tax deducted from their payments, which is later offset against their annual tax bill.

Yes - if a limited company pays subcontractors for construction work, it must register as a CIS contractor and submit monthly returns to HMRC, just like an individual would.

20% for registered subcontractors

30% for unregistered subcontractors

0% for subcontractors with gross payment status

HMRC charges automatic penalties starting from £100 for one day late, increasing the longer the return remains outstanding.

Contractors must verify subcontractors with HMRC before making the first payment to confirm their tax deduction rate. We handle this verification for you.

The CIS300 is the monthly return that construction contractors must submit to HMRC under the Construction Industry Scheme (CIS). It reports payments made to subcontractors and the tax deducted from those payments. Even if no payments were made in a given month, a nil CIS300 return must still be submitted to stay compliant.