CIS Hub
Clear, practical help with the Construction Industry Scheme for contractors and subcontractors — from registering and CIS payroll to VAT Plus, tax deductions and refunds. Our Chessington team deals with HMRC so you can focus on the job.
About CIS
Construction is one of the most important industries in the UK, and a key part of the economy. If you’re working in construction or thinking about starting a construction business, it's important to understand how the Construction Industry Scheme works.
At Maze Accountants we’re experienced accountants for contractors and can guide you through CIS, explain how it impacts your tax situation, and deal with HMRC on your behalf.
If you do not register before starting work, a higher CIS tax deduction of 30% must be made from your payments. Once you are registered for CIS status, tax deductions are 20%. If you were not fully registered before starting work, you may be able to claim the difference back (for the period you paid 30%) through your end-of-year tax return.
Our CIS Accounting Services
Running a business comes with plenty of challenges. Let us make CIS one less thing to worry about with CIS accounting services designed to keep you compliant and stress-free.
- Full CIS Compliance Management: We handle all aspects of CIS compliance, ensuring you meet all HMRC requirements without hassle.
- Maximise Your Tax Efficiency: Our experts help you claim allowable expenses and maximise your tax returns legally and efficiently.
- Ongoing Financial Support: Receive continued support and advice to manage your cash flow and keep your finances in order.
- Resolve Issues with HMRC: We act on your behalf to resolve any disputes or issues with HMRC, saving you time and stress.
How does CIS payroll work?
If you are a contractor who hires subcontractors, or you operate a business and spend £3 million or more on construction within 12 months, there are certain rules that apply when you pay your subcontractors for their work.
Here’s how the CIS payroll process works:
- Register for the Construction Industry Scheme: Before taking on any subcontractors, you must register for the CIS with HMRC.
- Verify the Subcontractors’ CIS Status: Before hiring, verify each subcontractor's CIS status to apply the correct tax deduction rates.
- Make Relevant CIS Tax Deductions: Deduct the appropriate amount of CIS tax from payments for construction work before paying the subcontractors.
- Provide Payment Statements: Give subcontractors a detailed payment and deduction statement each time you pay them.
- Submit Monthly CIS Returns: Send your CIS returns to HMRC every month and keep accurate records of all payments and deductions.
The different CIS rules and regulations can be confusing at first. With the right support from our expert team at Maze Accountants, CIS payroll can become a seamless part of your business operations at an affordable cost.
CIS VAT Plus
If you are a sole trader or subcontractor working in construction and have a turnover of between £30,000 and £150,000 per year, registering for our enhanced VAT Plus service could save you a minimum of 5.5% on your VAT bill.
If you earn or expect to earn in excess of £83,000 per annum you will be required to register for VAT, however you can register in advance of earning this amount and take advantage of the Flat Rate Scheme via our VAT Plus service.
Our VAT Plus service gives you a completely managed VAT service and could also increase your take-home pay. As a VAT Plus customer, we will:
- Register you for VAT
- Register you for the VAT Flat Rate Scheme
- Monitor the amount of VAT you need to pay
- Calculate your quarterly VAT payments
- Submit your VAT returns (monthly or quarterly as required)
All you will have to do is keep enough money aside to cover your VAT payment, pay HMRC within their payment deadline once we have submitted your return, and keep us up to date with any changes to your income.
What next?
- You register as you would for our CIS Payroll service and let us know you are looking for the VAT Plus package
- We will ask you to sign a short additional set of terms and conditions and set you up with the enhanced VAT Plus service
- We will help you register for a Construction Industry Scheme UTR (Unique Taxpayer Reference) number and as self-employed if you are not already registered
- We will register you for VAT as well as the Flat Rate Scheme and notify you of your flat rate percentage
- When we have your billing details or timesheet we will invoice your clients plus VAT, taking care of any credit control issues along the way
- As soon as your client(s) pay the invoice, we will pay the amount (inclusive of VAT), with CIS tax and our administration fee deducted, directly into your account
- We will send a text the same day to let you know the money has been paid and email your payslip
- Each month we will monitor the amount of VAT you have to pay
- Each quarter we will notify you of your VAT liability and submit your VAT return (we are not able to pay VAT on your behalf, so you will need to arrange payment yourself)
- From the first day of registration, you will benefit from Employers and Public Liability Insurance for each week you work through us
- Our brokers can also provide Site Accident Insurance to cover you whilst at work
- There are no setup or cancellation fees for the VAT Plus service
Getting Started
Starting out as a self-employed subcontractor means you’re in charge of everything — from the decisions you make to managing your finances. Here’s a simple guide to help you get started:
- Know What It Means: Being a sole trader means you are your business. It’s easy to set up, and you have full control, but you’re also responsible for any profits or losses.
- Pick a Business Name: You can use your own name or choose something more unique for your business. Just make sure the name isn’t already taken.
- Register with HMRC: Registering makes your business official and allows you to pay the right tax.
- Set Up a Bank Account: Open a separate business bank account. It’s the best way to keep your personal and business finances separate.
- Get Any Required Permits: Depending on your type of work, there may be specific licences or permits you need. Check local rules to make sure you’re covered.
- Keep Good Records: Track all your income and expenses. It’ll help with tax time and give you a clear picture of how your business is doing.
- Understand Taxes: You pay tax on the profits you make, and you’ll also need to pay National Insurance.
- Know Your Legal Responsibilities: You’re personally responsible for any debts, so it’s a good idea to get insurance to protect yourself.
- Promote Your Business: Use social media, networking, and other strategies to get the word out and attract clients.
How to register for CIS
- Step 1: Register for HMRC’s Online Services: Start by registering for HMRC’s online services and enrolling for self-employment.
- Step 2: Receive Your Credentials: You’ll get your Government Gateway ID via email and your Unique Taxpayer Reference (UTR) number by post.
- Step 3: Log In and Register for CIS: Go to the official HMRC website, log in using your Government Gateway ID, and select the option to register for CIS.
- Step 4: Choose Your CIS Payment Status: Select whether you want to be paid under net pay (tax is deducted by the contractor) or gross pay (you manage and pay your own tax).
CIS Benefits
Our CIS services offer a wide range of benefits including:
- Low Weekly Fees: Only applied the weeks you actually work
- No Joining or Leaving Fee
- Portable Product: Take our payroll services with you from contract to contract
- No Delay in Payment: We have pay runs every day, Monday to Friday
- Dedicated Payroll Coordinator
- Access to End of Year Accounting Services
- Assistance with Financial Services: Including mortgages, pensions, life insurance and more — even those difficult to obtain when contracting
- Reduced Rate Tax Return Service
- Tax Advisory Service: Get all of your tax queries, whether personal or professional, answered
CIS FAQs
The tax deduction rate is 20% for registered subcontractors and 30% for unregistered ones.
It can take up to 8 weeks, depending on the complexity of your claim.
Yes, many workers receive their full rebates, especially if they are registered and provide accurate records.
Contractors deduct tax from a subcontractor's payments before they are made, and these deductions go to HMRC.
CIS covers construction-related work, including building, demolition, and site preparation.
You can register online through the HMRC website or by calling them directly.
Need help with CIS?
Speak to Maze Accountants about CIS registration, payroll, VAT Plus and your tax refund.