What Is the Construction Industry Scheme (CIS)? A Targeted Guide for UK Businesses

The Construction Industry Scheme (CIS) sets out framed requirements for how contractors in the UK must manage payments to subcontractors. Administered by HM Revenue & Customs (HMRC), CIS addresses tax compliance directly within the construction sector.

It applies to businesses that pay subcontractors to complete construction-related tasks, whether structural work, site preparation, or finishing trades.

Speak to one of our accountants today on 01483 418863 or complete a contact form below

More about CIS Contact Us

Contractors must register for CIS and verify each subcontractor with HMRC before making deductions from payments. These deductions, either 20% for registered subcontractors or 30% for unregistered ones, go directly to HMRC and count as advance payments towards the subcontractor’s income tax and National Insurance.

Who Must Register for the Construction Industry Scheme?

Registration under the Construction Industry Scheme (CIS) depends on the role your business plays in the supply chain.

Contractors Paying Subcontractors

Any firm or individual that pays subcontractors for construction work falls under the contractor category, and must register for CIS before making those payments.
This includes:

Traditional construction companies hiring self-employed tradespeople or other businesses;

Property developers managing builds with outsourced labour;

Businesses from any sector that carry out construction work and pay others to do it on their behalf.

Subcontractors Receiving Payments

HMRC uses your registration status to apply one of the following deduction rates: 20% (standard), 30% (unregistered), or 0% (gross payment status).

Registration not only confirms your status but also simplifies how payment deductions and reporting are handled.

Without it, contractors must deduct a higher rate of tax—30%—from your payments.

Non-Construction Businesses Doing Significant Construction

Some businesses operate outside the construction sector but still get drawn into CIS due to the scale of their building activities.

If your business spends more than £1 million on construction-related operations in any rolling three-year period, it must register as a contractor—even if construction isn’t your core activity.

Failing to register once the £1 million threshold has been crossed will put the business in breach of HMRC’s CIS rules. Monitoring total construction spend across all departments is the only reliable method for staying compliant.

How can JML accountancy help?

Register you as a contractor or subcontractor with HMRC
Verify subcontractors with HMRC before making payments
Advise on your CIS status and whether you need to register

Prepare and submit your monthly CIS returns to HMRC on time
Help you avoid penalties for late or incorrect returns
Ensure the correct deduction rates are applied (20%, 30%, or gross
payment status)
Apply for and maintain gross payment status where eligible

Calculate CIS deductions accurately on every payment
Ensure payments to subcontractors are processed correctly within the scheme
Supply deduction statements (payment and deduction certificates) to your subcontractors
Reclaim CIS deductions suffered if you’re a subcontractor

Keep your CIS records, accounts, and paperwork in order
Maintain accurate records of all payments made to subcontractors
Reconcile CIS deductions with your tax liabilities

Advise on whether workers should be classified as employed or self-employed under CIS
Keep you up to date with any changes to CIS rules and regulations
Help you understand your obligations as a contractor, subcontractor, or both
Advise on VAT reverse charge rules for construction services
Support you through any HMRC CIS compliance checks or investigations
Integrate CIS with your payroll where you have both employed and subcontracted workers

Construction Industry Scheme CIS Accountancy

Contact one of our accounting team today. We have the specialist knowledge in this area and can help you or you can also read our guide to CIS tax refunds to become more informed. Should you wish to contact us you can either complete a contact form (and we will call you back) or call us.

Complete Form Call Us

Our Reviews

    
 
 
       Posted on Google  
   
   Alex Dover 
 
 
 
 Trustindex verifies that the original source of the review is Google. Outstanding service from JML. They are my favourite people as they always seem to be giving me good news about tax savings making me feel significantly richer! :)  I've worked with them for many years now from the Directors of the business and more recently Travis who has been outstanding in helping with both my company and personal accounting. It feels great to be on top of everything thanks to his support. Thank you JML!
  
 
      Posted on Google  
   
   Adam Poczatek 
 
 
 
 Trustindex verifies that the original source of the review is Google. We've been working with JML for about a year now and they've been a huge help the whole way through.

They supported us right from when we started the company and have been there at every stage since. Everything from VAT registration and payroll to tax returns has been handled smoothly, which has made things a lot easier and less stressful.

Great service, very helpful and friendly team – highly recommended!
  
 
      Posted on Google  
   
   Becca Stow 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had an urgent accountants reference I needed for a mortgage. I wouldn’t recommend anyone else for accountancy. I was very pleased with communication, efficiency and attention to detail. I am very pleased they were recommended to me. I will definitely be using them again in the future. Thank you Jason and Travis!!!
  
 
      Posted on Google  
   
   Sugar Ray 
 
 
 
 Trustindex verifies that the original source of the review is Google. An overall excellent experience of working with JML Services. Everyone I worked with, especially Naveed and Jason, were extremely professional and helpful. I wouldn't hesitate to work with them again. I'm very grateful to them for their help. Thank you. Highly recommended!
  
 
      Posted on Google  
   
   Holly Piper 
 
 
 
 Trustindex verifies that the original source of the review is Google. Very helpful and friendly accountancy firm. Able to answer even my most stupid questions as a small independent business owner
  
 
      Posted on Google  
   
   Josh Daoust 
 
 
 
 Trustindex verifies that the original source of the review is Google. Highly recommend I’ve been dealing with JML for over 10 years and they are always there when I need them for advise etc
  
 
      Posted on Google  
   
   Julie Noyce 
 
 
 
 Trustindex verifies that the original source of the review is Google. Naveed and his team have been outstanding with their help with our requirements
  
 
      Posted on Google  
   
   Anthony Hirewear 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great service,happy staff, efficient reliable accountancy firm.

More Services from JML

Payroll
Payroll burning up your time and energy? Eliminate the stress of payroll and focus on…
service
Management Accounting
Management Accounting Services for Surrey & Hampshire Businesses Tired of financial confusion, cash flow crises,…
service
Xero Accountants
Take Control of Your Finances with our Certified Xero Accountants for Growing UK Businesses Streamline…
service
Bookkeeping
Searching for Bookkeepers with Expertise? Surrey Bookkeeping Services from JML Is your business positioned to…
service
Tax Returns
Tax Returns Service Accurate, Timely, HMRC-Compliant Tax Filing for Surrey & Hampshire From £225 +…
service