Home / Construction Industry Scheme
CIS accounting for Wirral subcontractors and contractors
If a contractor takes 20% off your labour, there's a good chance you've paid too much tax. We check every deduction, claim back what you're owed, and keep contractors' monthly CIS returns on time.
- Weekday evenings until 10pm, weekends until 8pm
- Refund claims for up to four years
- Sole traders and limited companies
- Fixed fees, no VAT added
How CIS works
Three deduction rates
Under the Construction Industry Scheme, contractors take tax off subcontractors' labour before paying them and pass it to HMRC. Materials aren't deducted. The rate depends on your registration.
Registered with HMRC
The standard rate. Most self-employed tradespeople are on this.
Not registered
A higher rate if you haven't registered for CIS. We can register you so it drops to 20%.
Gross payment status
No deductions at all. You pay your own tax through your return, which helps cash flow.
For subcontractors
Why you're probably owed money
CIS deductions are an advance payment towards your tax bill. They're worked out on your gross labour, before your van, tools, fuel and other costs, and before your personal allowance.
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So once your return is done, the tax and National Insurance you actually owe is often less than what's been taken. HMRC repays the difference, but only if you file a return that claims it.
We go through every payment and deduction statement, make sure each contractor's figures match HMRC's records, and claim every expense you're entitled to.
Missed previous years? You can claim for up to four years back. We'll file the missing returns and claim the refunds together.
Costs subcontractors commonly claim
- Van and vehicle costsFuel, insurance, repairs and finance interest, or a mileage rate
- Tools and equipmentHand tools, power tools, ladders and hire costs
- Protective clothing and PPEBoots, hi-vis, hard hats and gloves
- Phone and adminThe business share of your phone, plus stationery and software
- Training and cardsCSCS cards, tickets and courses for your trade
- Insurance and professional feesPublic liability insurance and your accountant's fees
- Materials you buy yourselfWhich also shouldn't have had CIS deducted
Limited company subcontractors
Set deductions against your payroll
If you trade through a limited company, CIS deductions don't wait for a tax return. They're set against the PAYE and National Insurance your company owes each month through payroll.
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Many small companies never claim this, or claim it wrongly, and end up with money stuck at HMRC. We run your payroll, claim the deductions monthly, and request any balance back at the end of the tax year.
Making Tax Digital and CIS
Self-employed subcontractors with over £50,000 of turnover now send quarterly updates under Making Tax Digital. The threshold drops to £30,000 in April 2027. Your CIS deductions are still credited when the final declaration is made, and we handle both together.
For contractors
Monthly CIS returns, handled
If you pay subcontractors for construction work, you have to verify them with HMRC, deduct the right rate, and file a CIS return every month. HMRC charges penalties for late returns, starting at £100 and rising the longer one stays outstanding.
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We do all of it each month, so the payments you make are right and the return goes in on time. Since April 2026 contractors must also file a nil return in any month they pay nobody, unless they tell HMRC in advance. We handle that too.
- Subcontractor verificationChecked with HMRC before the first payment, so you deduct the correct rate
- Monthly CIS300 returnFiled by the 19th of each month, including nil months where needed
- Payment and deduction statementsSent to each subcontractor every month
- Payment to HMRCWe tell you what to pay and when it's due
- VAT domestic reverse chargeApplied correctly on your invoices if you're VAT registered
Gross payment status
Get paid in full
With gross payment status, contractors pay you without deducting anything. You pay your own tax through your return or your company's tax return, so the money stays in your business until it's due.
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HMRC grants it if your business passes three tests. The compliance test means you have filed and paid your tax on time. The business test means you do construction work in the UK and run the business through a bank account. The turnover test looks at the last 12 months, excluding VAT and materials: a sole trader needs at least £30,000. A limited company needs £30,000 for each director, or £100,000 for the whole company. Where the company is run by five people or fewer, each of them counts. Most applications fail on the compliance test. We check whether you qualify, fix anything that would stop you, and make the application.
Keep it once you have it
HMRC reviews gross payment status regularly and can remove it after late filing or late payment. We keep your returns and payments on schedule so you hold on to it.
CIS fees
Fixed prices
Agreed in writing before we start. No VAT added.
| Subcontractor tax return | Return filed, every CIS statement checked, refund claimed. | £15a month · £180 a year |
| Subcontractor on MTD | Four quarterly updates and the final declaration, with CIS deductions credited. | £35a month · £420 a year |
| Construction company package | For contractors paying subbies. Verification, monthly CIS300 and statements, with books, VAT, payroll and accounts. | £150a month · £1,800 a year |
| Previous years' refunds | Missing or incorrect returns for earlier years, filed to reclaim overpaid tax. | Fixed quoteper year claimed |
Questions
CIS questions
What do I need to send you?
Your monthly payment and deduction statements from each contractor, your bank statements, and receipts for your costs. If you use a mileage log or a bookkeeping app, send that too. Photos of receipts are fine.
I've lost some CIS statements. Can I still claim?
Yes. Contractors have to provide duplicates if you ask, and HMRC holds a record of what's been reported. We'll reconcile the two and chase any gaps.
How far back can I claim a refund?
Up to four years after the end of the tax year. Returns for earlier years can still be filed late to reclaim overpaid tax, and we'll tell you if any penalties apply first.
My contractor deducted 30%. Is that right?
Only if you're not registered for CIS or HMRC couldn't match your details. We'll register you or correct your details so future deductions are at 20%, and the extra 10% counts towards your refund.
I'm paid gross. Do I still need a tax return?
Yes. Nothing is taken off by your contractors, so the whole tax bill is yours to pay through your self assessment return, or through your company's accounts. We estimate it through the year so there are no surprises, and we plan payments on account. There is no CIS refund when nothing has been deducted.
I'm a contractor. Do I need to check my subbies' status?
Yes. Before you pay a subcontractor you have to verify them with HMRC, which tells you whether to deduct 20%, 30% or nothing. We do this for you every month and file your CIS300 return, including for subbies you pay gross.
I want gross payment status. Can you apply for me?
Yes. We first check you meet the compliance, business and turnover tests, and fix anything that would stop you. We then make the application for a fixed fee of £150, one-off.
Should I go limited?
It depends on your profit, how much you want to take out, and how much admin you're happy with. We'll compare the two for your figures before you decide.
Did the 2026 Budget change anything for CIS?
CIS itself is unchanged, but nil returns are back for contractors, and the trading allowance, property tax rates and Making Tax Digital threshold are moving in April 2027. Read our Budget 2026 summary.
Next step
Find out what you're owed
Send us your CIS statements and we'll tell you what refund to expect before you pay us anything.
Same-day call back. Weekday evenings until 10pm, weekends until 8pm. No call centre.
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