What to do as a contractor
- Register as a contractor. With HMRC under the Construction Industry Scheme before you pay subcontractors.
- Verify each subcontractor. Check with HMRC to confirm whether to deduct at 20%, 30% or nothing.
- Make the deduction. Deduct from the labour part of each payment and pay it to HMRC.
- Give a statement. Provide each subcontractor with a monthly deduction statement.
- File monthly returns. Submit a CIS return to HMRC each month, even if you paid no one, to avoid penalties.
New to paying subcontractors?
CIS returns are monthly and the penalties are quick. TaxTune registers you, verifies subcontractors, runs the deductions and files your returns, so you stay compliant every month.
Let us handle your CIS
We manage your contractor duties end to end, from verification to monthly returns and statements. Fixed fee.
Frequently asked questions
Do I have to register for CIS if I use subcontractors?
Yes. If you pay subcontractors for construction work you are a contractor under the Construction Industry Scheme and must register before paying them.
How much do I deduct from subcontractors?
20% from subcontractors registered with CIS, and 30% from unregistered ones. Verification with HMRC tells you the correct rate for each.
What is CIS verification?
Before paying a subcontractor, you check with HMRC to confirm whether to deduct at 20%, 30% or nothing. It ensures the right rate is applied.
Do I have to file CIS returns every month?
Yes. A monthly CIS return is due to HMRC, even in a month where you paid no subcontractors, to avoid automatic penalties.
Can I outsource my CIS duties?
Yes. Many contractors do, to avoid missed monthly returns and penalties. We handle verification, deductions, statements and returns on a fixed fee.