Construction Industry Scheme

The Construction Industry Scheme (CIS) is a UK government framework that ensures contractors deduct the right amount of tax from payments to subcontractors in the construction sector. CIS applies to most construction work, including site preparation, building, repairs, and demolition. Contractors must register and operate the scheme correctly to comply with HMRC rules and avoid penalties.

At PHS Associates, our experienced CIS accountants guide businesses through CIS registration, deductions, and monthly reporting. We help contractors and subcontractors manage their tax responsibilities smoothly, ensuring compliance and maximising tax efficiency within the construction industry. Trust PHS Associates to support your CIS needs with expert advice tailored to the construction sector.

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CIS Registration Support

We provide clear Construction Industry Scheme (CIS) registration support, guiding you through every step to register accurately and on time. Whether you’re a contractor or subcontractor, we simplify the process so you comply with HMRC rules and start your construction work without delays.

Step-by-step registration help
Accurate form completion guidance
Quick, compliant CIS setup

Tax Management for CIS

Our tax management service for the Construction Industry Scheme (CIS) ensures accurate deduction calculations and full HMRC compliance. We stay updated with tax law changes, helping you avoid errors and penalties, so your construction business remains financially organised.

Accurate CIS tax deductions
Timely HMRC filing support
Clear, stress-free tax guidance

CIS Reporting

We specialise in accurate Construction Industry Scheme (CIS) reporting, submitting timely monthly returns to HMRC on your behalf. Our experienced team keeps detailed records of payments and deductions, helping you stay compliant and focus on your construction projects with confidence.

Accurate monthly CIS returns
Detailed payment and deduction records
Timely HMRC submissions

CIS Guidance and Support

We provide ongoing guidance on the Construction Industry Scheme (CIS) to help you understand tax deductions and stay compliant with changing rules. Our expert team keeps you informed and supports you every step of the way, simplifying CIS processes for your construction business.

Clear CIS guidance and support
Regular updates on tax rules
Help with CIS compliance questions

Reach us today.

If you want to take your accounting work to the next level, then reach us today without wasting time.

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Frequently asked questions

CIS is a HMRC tax framework requiring contractors to deduct tax from subcontractors’ payments in the construction sector. It helps spread tax payments across the year.

Contractors hiring subcontractors must register. Subcontractors can register to benefit from lower tax deduction rates but aren’t legally required to do so.

Contractors deduct 20% or 30% tax from payments to subcontractors depending on their registration status, handing it over to HMRC as pre-paid tax.

CIS covers construction activities like building, repairs, site preparation, demolition, and installation of systems such as heating or lighting.

Yes, subcontractors meeting criteria can apply to receive payments without CIS deductions, paying tax through their self-assessment instead.

Subcontractors not registered may have 30% tax deducted. Contractors failing to comply face penalties and fines from HMRC

No, CIS only applies to subcontractors. Employees are taxed through PAYE and are not subject to CIS deductions.

Contractors must submit monthly CIS returns detailing payments and deductions to HMRC, even if no payments were made (nil returns).

Yes, if too much tax was deducted, subcontractors or limited companies can claim refunds from HMRC online with supporting evidence.

Contractors must keep accurate payment and deduction records for at least 3 years to show compliance if HMRC requests.

No, but VAT domestic reverse charge rules may impact CIS-registered contractors and subcontractors who are VAT registered.

Yes, such businesses must register for CIS in both roles and follow the rules applicable to each.

HMRC charges penalties ranging from £100 to several hundred pounds for late or missed filings, plus interest on late payments

PHS Associates Acc & Co is led by a skilled team with expertise in Accounting, Taxation, Payroll, Business consultancy, and Company secretarial services.

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Company number - 08670151

Construction Industry Scheme

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