CIS Services

CIS puts real administrative weight on construction businesses. Contractors must verify every subcontractor with HMRC, deduct the right amount of tax from every payment and file a return every single month — and automatic penalties apply the moment a return is late. Subcontractors, meanwhile, often have too much tax deducted and then wait months to get it back.

Acumon's payroll and CIS team takes all of that off your desk. We run CIS alongside payroll for construction clients across the UK, keeping contractors compliant and helping subcontractors keep more of their money as they earn it.

How the Construction Industry Scheme Works

Under CIS, contractors must deduct tax from the labour element of payments to subcontractors and pass it to HMRC. The deduction rate is 20% for subcontractors registered with HMRC, 30% for those who are not registered, and 0% where the subcontractor holds gross payment status. Deductions are calculated on payments excluding VAT and the cost of materials, and they count as advance payments towards the subcontractor's tax and National Insurance.

The scheme covers most construction work in the UK — including site preparation, alterations, repairs and decorating — and applies to companies, partnerships and sole traders alike. Businesses outside the construction sector can also be caught as 'deemed contractors' if their spend on construction work is high enough.

CIS for Contractors

If you pay subcontractors, you must register as a contractor, verify each subcontractor with HMRC before you first pay them, make the correct deductions and file a CIS return every month. Returns are due by the 19th of each month, and a return that is even one day late triggers an automatic £100 penalty, with further penalties as the delay grows.

We handle the entire cycle: contractor registration and scheme setup, subcontractor verification, deduction calculations with materials and VAT correctly excluded, monthly returns filed on time, payment and deduction statements issued to your subcontractors, and records kept ready for any HMRC review.

CIS for Subcontractors

If you work for contractors, registering with HMRC is the difference between 20% and 30% deductions — and gross payment status removes deductions altogether, transforming cash flow for established businesses. We register you, apply for gross payment status where you meet HMRC's compliance, turnover and business tests, and make sure every pound deducted is recovered.

Sole traders and partners reclaim CIS deductions through Self Assessment. Limited companies can offset deductions against their PAYE liabilities during the year through the Employer Payment Summary (EPS) — something we manage automatically when we also run your payroll.

CIS, VAT and the Domestic Reverse Charge

Construction businesses also face the VAT domestic reverse charge, which shifts responsibility for accounting for VAT from the supplier to the customer on many supplies between VAT-registered construction businesses. Getting the interaction between CIS and the reverse charge wrong is one of the most common errors we see. Because we handle CIS, payroll, VAT and accounts under one roof, your treatment stays consistent across all of your filings.

HMRC Enquiries and Putting Problems Right

CIS is a regular target for HMRC compliance activity, and errors — missed verifications, wrong deduction rates, late returns — can build into significant liabilities over time. We carry out CIS health checks, correct historical errors on the best available terms, and represent you throughout any HMRC enquiry so problems are resolved quickly and you can get back to building.

What You Get With Acumon

• CIS registration and scheme setup for contractors and subcontractors
• Subcontractor verification and the correct deduction rate on every payment
• Monthly CIS returns filed by the 19th, every month
• Gross payment status applications for qualifying subcontractors
• In-year CIS offsets for limited companies via the EPS
• Payment and deduction statements for your subcontractors
• CIS health checks, error correction and HMRC enquiry support

Why Acumon for CIS Services?

• Payroll and CIS run in-house for 250+ companies
• All payroll staff hold Chartered Institute of Payroll Professionals (CIPP) qualifications
• All payroll and CIS team members are based in the UK

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.