What records do I need to keep for CIS?
Phil Barnes2026-06-04T09:42:49+00:00Contractors should keep records of payments made, deductions applied, and CIS returns filed. Subcontractors should keep records of deductions received for their tax return.
How do I verify a subcontractor under CIS?
Phil Barnes2024-10-16T16:35:36+00:00Contractors must verify the subcontractor’s CIS status with HMRC before making payments. This can be done online or over the phone.
How do I register as a CIS subcontractor?
Phil Barnes2026-06-04T09:43:07+00:00You can register online through the HMRC website or let Frank's Accountants handle the registration process for you.
Can I deduct CIS from materials costs?
Phil Barnes2024-10-16T16:31:02+00:00No, CIS deductions should only apply to the cost of labour, not materials or plant hire.
Do I need to file CIS returns?
Phil Barnes2024-10-16T16:30:26+00:00Yes, contractors must file monthly CIS returns to HMRC, detailing the payments made to subcontractors and the deductions taken.
What happens if I don’t register for CIS?
Phil Barnes2024-10-16T16:29:49+00:00If you’re a subcontractor and don’t register for CIS, your contractor will deduct 30% from your payments instead of 20%. You may also face penalties from HMRC.
Can I claim a CIS refund?
Phil Barnes2026-06-04T09:43:53+00:00Yes, if you have overpaid tax through CIS deductions, you can claim a refund when you submit your annual tax return.
How much tax is deducted under CIS?
Phil Barnes2026-06-04T09:44:30+00:00Registered subcontractors have 20% deducted from their payments, while unregistered subcontractors have 30% deducted.
Who needs to register for CIS?
Phil Barnes2024-10-16T16:20:41+00:00Both contractors and subcontractors working in the construction industry need to register for CIS. Contractors are responsible for deducting tax from subcontractors' payments.
What is the Construction Industry Scheme (CIS)?
Phil Barnes2026-06-04T09:45:10+00:00CIS is a set of rules that require contractors to deduct money from subcontractors’ payments for tax and National Insurance, which is then passed to HMRC.
