If you work in construction, keeping on top of the Construction Industry Scheme can quickly become another job in itself.
Yorkshire Accountancy provides CIS accounting services for contractors and subcontractors across Yorkshire and throughout the UK. Whether you need help registering for CIS, verifying subcontractors, submitting monthly CIS returns, reconciling deductions or completing your Self Assessment tax return, we can take care of the accounting and tax side for you.
We work with builders, electricians, plumbers, joiners, roofers, plasterers, scaffolders and other construction trades, from self-employed subcontractors through to limited companies managing teams of subbies.
Looking for a CIS accountant? Speak to Yorkshire Accountancy about taking the paperwork off your hands.
Our CIS accountants can help with:
If you pay subcontractors to carry out construction work, you may have responsibilities as a contractor under the Construction Industry Scheme.
Getting CIS wrong can result in incorrect deductions, late returns and potentially costly penalties. Our CIS accountants for contractors can help manage the process from start to finish.
We can assist with:
When you verify a subcontractor, HMRC will tell you which deduction rate should apply.
The main CIS rates are:
You then need to report the relevant payments and deductions to HMRC and pay over the amounts deducted.
We can manage this process for you so that your CIS records, accounting records and HMRC submissions stay aligned.
CIS contractors must report payments made to subcontractors to HMRC through their monthly CIS return.
The CIS tax month runs from the 6th of one month to the 5th of the next, with the return normally due by the 19th following the end of the tax month.
Your return can include details such as:
If you have not paid any subcontractors during the period, you will generally need to submit a nil return or notify HMRC that you have temporarily stopped using subcontractors.
Yorkshire Accountancy can prepare and submit your CIS returns as part of an ongoing accounting service, helping you avoid missed deadlines and keeping your records up to date.
If you work for a contractor under CIS, tax may be deducted from your payments before the money reaches you.
For a registered subcontractor, this will normally be at 20%. If you are not correctly registered or cannot be verified, deductions can be made at 30%.
Importantly, CIS deductions are not necessarily your final tax bill. They are advance payments towards your tax and National Insurance position.
Our sole trader accountants can help you make sure the deductions you have suffered are properly recorded and taken into account.
We can help with:
Whether you are a self-employed bricklayer working for one main contractor or operate a limited company working across multiple sites, we can tailor the service around the way you actually work.
It is common to hear CIS deductions described as a “CIS tax”, but they are actually payments towards your eventual tax and National Insurance liability.
That distinction matters.
A contractor may have deducted 20% from your qualifying payments throughout the year, but your final tax position depends on your actual business profits and individual circumstances.
This means some subcontractors may be entitled to a tax repayment, while others could still have tax to pay.
We can reconcile the deductions shown on your CIS statements, prepare your accounts and make sure legitimate business expenses are included before calculating your final tax position.
Depending on your circumstances, allowable expenses could include costs relating to:
The rules depend on the individual expense and your circumstances, so we recommend checking rather than assuming a cost is automatically allowable.
Our aim is to make sure you claim what you are legitimately entitled to without taking unnecessary risks with HMRC.
Subcontractors with gross payment status can be paid by contractors without CIS deductions being taken from their payments.
Rather than having tax deducted at source, you are responsible for dealing with your own tax liabilities.
Gross payment status can improve cash flow for established construction businesses, particularly where significant amounts are otherwise being deducted each month.
However, you need to meet HMRC’s qualifying conditions and continue meeting the relevant requirements to retain the status.
Yorkshire Accountancy can help you assess whether gross payment status is appropriate, assist with the application process and help keep your tax affairs in order once it is granted.
CIS and VAT are separate tax regimes, but construction businesses often need to deal with both at the same time.
One of the main areas to consider is the Domestic Reverse Charge for construction services.
Where the reverse charge applies, the customer rather than the supplier accounts for the VAT. This can affect your invoices, VAT returns and cash flow.
Our construction and CIS accountants can help with:
If you are unsure whether CIS, the VAT Domestic Reverse Charge or both apply to a particular job, speak to our Vat Accountants before submitting the return.
If you are a self-employed CIS subcontractor, Making Tax Digital for Income Tax may now affect how you keep your accounting records and report information to HMRC.
From 6 April 2026, qualifying sole traders with total annual qualifying income from self-employment and property of more than £50,000 are required to use Making Tax Digital for Income Tax, unless an exemption applies.
The threshold is scheduled to reduce to:
Those within MTD for Income Tax need compatible software to maintain digital records and meet the relevant HMRC reporting requirements.
Our Making Tax Digital Services can help you:
You do not need to buy complicated accounting software simply because you work under CIS. We can recommend a system suited to the size and complexity of your business.
Good CIS accounting starts with good bookkeeping.
Construction businesses can have complicated records, particularly where payments include labour and materials, multiple contractors are involved or dozens of subcontractors are being paid each month.
We can provide bookkeeping services covering:
Having accurate records throughout the year also means there is less work to untangle when your accounts or tax return become due.
CIS does not only apply to self-employed sole traders.
Limited companies can operate as contractors, subcontractors or both.
For example, your company may have CIS deducted from payments it receives while also making deductions from subcontractors it pays.
The accounting treatment and process for reclaiming deductions can differ from those of a self-employed individual.
Our Limited Company Accountants can manage your wider company accounting alongside CIS, including:
Keeping everything with one accountant can make it much easier to reconcile CIS with payroll, VAT, bookkeeping and your company’s year-end accounts.
We support a wide range of businesses working within the construction industry.
This includes:
If you operate within one of these trades, we can provide broader accounting and tax support as well as managing your CIS obligations.
Construction businesses need an accountant who understands how CIS works alongside the rest of their accounts.
We provide practical support rather than simply contacting you once a year when a tax return is due.
With Yorkshire Accountancy, you can get:
We are based in East Yorkshire and work with businesses throughout Hull, Yorkshire and nationally.
Our aim is simple: keep the accounting side organised so you can concentrate on running your business and getting jobs completed.
Whether you’re a contractor managing a team of subcontractors or a self-employed tradesperson having CIS deducted from your payments, we can help you keep everything organised.
Yorkshire Accountancy can deal with your CIS returns, tax deductions, accounts, Self Assessment, VAT, bookkeeping and Making Tax Digital, giving you one point of contact for the accounting side of your business.
If you’re looking for reliable CIS accountants for contractors or subcontractors, get in touch with our team for an initial conversation about what you need.
Please call or email to arrange your FREE consultation for any of our services.
We’re a modern, friendly and proactive accountancy service.
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