CIS Accountant
Take the stress out of CIS with help from a specialist CIS accountant. We support contractors and subcontractors with CIS registration, deductions, monthly returns and bookkeeping. Our team keeps your records accurate and helps you meet HMRC rules, so you can focus on running your construction business.
CIS Accounting & Bookkeeping Services
At Jems Bookkeeping & Accountancy Services, we help contractors and subcontractors in the construction industry manage their accounts with confidence.
Our team can support you with the Construction Industry Scheme, also known as CIS. We help you stay compliant, keep accurate records and manage your tax, accounts and bookkeeping duties throughout the year.
What is the Construction Industry Scheme (CIS)?
The Construction Industry Scheme is a tax scheme set up by HMRC for the construction sector.
Under CIS, contractors must deduct money from payments made to subcontractors. They then send these deductions to HMRC.
These payments are treated as advance payments towards the subcontractor’s Income Tax and National Insurance. This means the right records and submissions are important, both for staying compliant and avoiding problems later.
To operate within the scheme:
- Contractors must register with HMRC.
- Subcontractors should register to reduce their deduction rate from 30% to 20%.
Understanding Key Roles
Contractor
A contractor is a business or individual who pays subcontractors for construction work. Contractors are legally required to:
- Register with CIS.Verify their subcontractors with HMRC.
- Deduct the correct CIS tax rate and submit monthly returns to HMRC.
- Provide deduction statements to subcontractors.
Subcontractor
A subcontractor is hired by a contractor to carry out construction work. While registration is not mandatory, unregistered subcontractors will face a higher deduction rate (30%). Registered subcontractors benefit from a reduced 20% deduction or, in some cases, 0% if they qualify for gross payment status.
Work Covered by CIS
Jems has extensive experience supporting businesses across the construction sector. We offer tailored CIS accounting services to ensure compliance and simplify your operations, including:
- Registration with HMRC as a contractor or subcontractor
- Accurate CIS tax and National Insurance deductions
- Day-to-day bookkeeping
- VAT returns and advice
- Full PAYE support for construction businesses
- Monthly CIS returns and submission to HMRC
- Issuing deduction statements to subcontractors
- CIS compliance audits and reviews
- Guidance with gross payment status applications
We offer full-service accountancy packages to ensure your tax, VAT, and specialist compliance needs are expertly managed.
CIS Deduction Rates
- 30% for unregistered subcontractors
- 20% for registered subcontractors
- 0% for subcontractors with gross payment status
What is Gross Payment Status?
Subcontractors with gross payment status receive their full payment with no CIS deductions. Instead, they are responsible for settling their tax and National Insurance via Self Assessment at year-end.
To qualify, subcontractors must:
- Be registered with HMRC for CIS
- Demonstrate a strong record of tax compliance
- Operate a UK-based business in the construction industry
- Hold a business bank account
- Meet HMRC turnover requirements:
- Sole traders: £30,000+
- Partnerships: £30,000 per partner or £100,000 total
- Limited companies: £30,000 per director or £100,000 total
- Close companies (5 or fewer shareholders): £30,000 per person
Note: Turnover excludes VAT and the cost of materials.
Construction Accountants Across the UK
With offices in London, Watford, Kent, Bristol and surrounding areas, our team supports clients throughout England with tailored construction accounting services. Whether you’re a contractor or subcontractor, we help you navigate the complexities of CIS, from registration and deductions to returns and compliance.
Frequently Asked Questions
What is CIS accounting?
CIS accounting covers the financial records, deductions and tax returns linked to the Construction Industry Scheme.
Contractors must calculate and report deductions made from subcontractor payments. Subcontractors must also keep clear records of the deductions taken from their income. A CIS accountant can help make sure these figures are accurate and reported correctly.
What is the difference between CIS and PAYE?
CIS applies mainly to contractors and subcontractors working in the construction industry. Contractors may need to deduct tax from subcontractor payments and send it to HMRC.
PAYE applies to employees. Employers use PAYE to deduct Income Tax and National Insurance from wages.
A worker’s role and working arrangements will help decide whether CIS or PAYE applies.
Is CIS different from being self-employed?
Yes. Being self-employed describes your employment status, while CIS is a tax scheme for certain types of construction work.
A self-employed subcontractor may also be registered under CIS. Tax may be deducted from their payments before they receive the money. They will still need to complete a Self Assessment tax return and report their full income and expenses.
Do all subcontractors need to register for CIS?
Subcontractors are not legally required to register, but there are clear benefits to doing so.
Registered subcontractors will usually have tax deducted at 20%. Those who are not registered may have deductions taken at 30%. Some subcontractors may also qualify for gross payment status, which means they can receive payments without deductions.
Can a CIS accountant help with monthly returns?
Yes. A CIS accountant can help verify subcontractors, calculate deductions and prepare monthly CIS returns.
They can also check that returns are submitted by the deadline and help correct errors. This reduces the risk of late filing penalties and gives contractors more time to focus on their projects and customers.
Can subcontractors claim CIS deductions back?
CIS deductions are treated as advance payments towards a subcontractor’s tax bill. The amount deducted is entered on their Self Assessment tax return.
After allowable business expenses have been included, the subcontractor may be due a tax refund. They may also need to pay more tax if their final liability is higher than the deductions already made.
What happens if a contractor fails to pay CIS to HMRC?
Contractors may face penalties and interest if they submit returns late or fail to pay deductions to HMRC.
Errors can also cause problems for subcontractors, as they may not receive the correct tax credit. An accountant can review the records, correct previous returns where needed and help bring the contractor’s reporting up to date.
Speak to Our Construction Tax Experts
If you’re working in the construction industry and need professional support with CIS accounting, Jems Bookkeeping & Accountancy Services Ltd is here to help. We offer expert, no-nonsense guidance to keep your business compliant and financially efficient.
Contact us today to learn more or to book your free consultation.
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