Understanding CIS Tax Returns

If you work in the UK construction industry as a contractor or subcontractor, CIS tax returns are not just a task—they're a legal requirement. This guide will walk you through everything you need to know about the Construction Industry Scheme (CIS), how tax is handled under it, and how to stay HMRC compliant.

What Is CIS (Construction Industry Scheme)?

The Construction Industry Scheme (CIS) is an HMRC initiative that applies to contractors and subcontractors in the construction sector. Under this scheme:

• Contractors deduct money from subcontractor payments and pass it on to HMRC.
• These deductions count as advance payments toward the subcontractor’s tax and National Insurance.

It’s designed to tackle tax evasion in the construction industry while ensuring that workers pay their taxes correctly and on time.

What Is a CIS Tax Return?

If you're a subcontractor, you must still file a Self Assessment tax return every year, even if tax has already been deducted through CIS. This is because:

• You might be due a refund if too much tax was deducted.
• You must declare all your income, expenses, and allowable deductions.
• HMRC uses this to determine whether you've overpaid or underpaid tax.

If you're a contractor, you are required to:

• Register for CIS
• Deduct the correct amount from subcontractor invoices
• Submit monthly CIS returns to HMRC

Typical CIS Deductions

• 20% for verified subcontractors
• 30% for unverified subcontractors
• 0% for gross payment status (no deductions at source)

How We Can Help with Your CIS Tax Return

Whether you’re a sole trader subcontractor or a growing construction firm, our accounting team can help you:

• Register or verify under the CIS scheme
• Track income and expenses accurately
• File your monthly CIS returns (contractors)
• File Self Assessment tax returns (subcontractors)
• Claim eligible refunds and reduce your tax liability
• Stay compliant with HMRC regulations

What Documents Do You Need for CIS Tax Returns?

To complete your return accurately, you'll typically need:

• UTR (Unique Taxpayer Reference) number
• CIS statements from contractors
• Invoices and bank statements
• Records of allowable business expenses
• Proof of tools, materials, travel, etc.

Why Choose Us for Your CIS Tax Returns?

• Expert knowledge in construction accounting
• Hassle-free digital submissions
• Maximise your tax refund
• Save time and avoid penalties
• Friendly support from real humans

Ready to File Your CIS Tax Return? Let’s Talk.

We make tax season stress-free for contractors and subcontractors across the UK. Let our CIS specialists help you file on time and get the refund you deserve.

Call us today at 01284332375
Or visit our website to book a free consultation.