Construction Industry Scheme

Our team of construction business accountants can provide you with expert guidance and support for CIS registration and claims. We help ensure your construction business remains fully compliant with the Construction Industry Scheme (CIS) regulations, enabling you to maximise profits and grow your business confidently within the construction industry.

What is the Construction Industry Scheme (CIS)?

The Construction Industry Scheme (CIS) is a government initiative designed to ensure that contractors and subcontractors in the construction industry pay the correct amount of tax and National Insurance contributions. Under the scheme, all registered contractors must register with HMRC for CIS and submit a monthly CIS return.

As part of the monthly CIS return, contractors declare the total payments made to subcontractors and must deduct tax at the appropriate CIS deduction rates—usually 20%—from each subcontractor’s payment. These CIS deductions count as advance payments towards the subcontractor’s tax and National Insurance liabilities.

The CIS scheme covers a wide range of construction work, including work on permanent or temporary buildings, structure civil engineering work such as roads and bridges, and other activities like decorating, installing systems, and providing access works, demolition, or laying foundations. This ensures that all payments made under the scheme are properly accounted for, helping to reduce tax evasion within the industry.

What work is covered by the Construction Industry Scheme?

The Construction Industry Scheme applies to most construction activities, such as:

• Preparing the site for construction,

• Demolition and dismantling building work alterations,

• Building work including extensions and repairs,

• Alterations, decorating, and installing systems like heating, lighting, power, water, and ventilation,

• Structure civil engineering work including roads, bridges, and other infrastructure,

• Cleaning the site after construction work is complete.

If your own business undertakes any of these activities, the CIS scheme will likely apply, and you must ensure you comply by registering correctly and submitting accurate monthly CIS returns.

How we assist with CIS compliance and tax affairs

Our experienced CIS accountants can help you verify subcontractors, calculate the correct CIS deductions, and prepare accurate deduction statements. We also assist with managing your tax affairs, including preparing your VAT return and self assessment tax return, ensuring all aspects of your construction business’s tax obligations are met on a quarterly basis or as required.

We understand the importance of maintaining a clear and compliant bank account record for all CIS payments and deductions, helping you avoid penalties if a contractor fails to deduct the correct amount of tax or National Insurance contributions. Our support extends to advising on gross payment status applications, which can affect how much tax is deducted from your subcontractor’s payments.

Why choose Knowles Warwick for your CIS accounting needs?

With extensive knowledge of the construction industry scheme CIS and its complexities, our dedicated team works closely with construction companies, sole traders, limited companies, and property developers to deliver tailored advice that fits your business model. We ensure you remain tax compliant and help you understand how much tax is payable under the CIS scheme.

For further assistance, download our comprehensive CIS Toolkit and Construction Industry Scheme update factsheet.

To discuss your tax affairs and CIS compliance, call us on 0114 274 7576 to speak with our Director of Tax, Alex, or email alexandra.higham@knowleswarwick.com.