Construction Industry Scheme (CIS)
If you work in the construction industry, you already know CIS isn’t optional, but it doesn’t have to be overwhelming. Whether you’re a contractor managing a team of subcontractors or a subcontractor trying to reclaim your deductions, the CIS comes with a strict set of rules, assessments and monthly filings. Mistakes can lead to penalties, tax surprises or delayed refunds.
Why choose Ivory Insight:
At Ivory Insight, we help you stay compliant, avoid errors and manage everything from HMRC checks to tax returns so you can focus on the job and not the paperwork.
For Contractors:
Hiring subcontractors comes with extra responsibility. We help you get it right, every time.
Our service includes:
- Monthly CIS returns submitted accurately and on time
- Verification checks with HMRC for all subcontractors
- Guidance on assessing subcontractor employment status
- Clear record-keeping and audit trail support
- Calculation of CIS deductions and support paying HMRC
- Ongoing advice to stay compliant and avoid penalties
Why status checks matter
Even if someone works for you as a subcontractor, they may not meet HMRC’s definition of “self-employed.” If you're not careful, you could be liable for unpaid tax and NIC. We help you get those assessments right – every time.
For Subcontractors:
Working under CIS? You may be owed money back and we’ll help you claim it.
We’ll support you with: - Informing HMRC of your self-employed status
- Registering for your UTR (Unique Taxpayer Reference)
- Keeping accurate deduction and income records
- Completing your year-end Self Assessment
- Reclaiming overpaid tax quickly and correctly
- Reducing your overall tax liability where possible
At Ivory Insight, we know the building trade and how to keep your CIS obligations simple and stress free. Whether you’re on-site or running multiple jobs, we’ve got you covered.
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FAQ's
What is the Construction Industry Scheme (CIS)?
The Construction Industry Scheme (CIS) is an HMRC system where contractors deduct tax from payments made to subcontractors and pay it directly to HMRC. These deductions count as advance payments towards the subcontractor’s Corporation Tax (if operating as a company) or Income Tax and National Insurance (if self-employed).
Do I need to register for CIS?
If you work in construction as a contractor or subcontractor, you may need to register for CIS. Contractors must register by law, while subcontractors benefit from registering as it reduces the deduction rate (20% instead of 30%). We can register you with HMRC and ensure you stay compliant.
Can Ivory Insight manage my CIS returns?
Yes, we handle all aspects of CIS compliance, including monthly CIS submissions to HMRC, verifying subcontractors and ensuring deductions are accurate. We also provide CIS statements for your subcontractors.
I’m a subcontractor. Can you help me claim a CIS tax refund?
Absolutely. Most subcontractors overpay tax through CIS deductions and we can file your Self Assessment tax return to claim a CIS refund quickly. We’ll ensure you claim all allowable expenses to maximise your refund.
What happens if I miss a CIS deadline?
HMRC can issue penalties if CIS submissions are late or incorrect. We make sure your returns are filed on time and accurately to avoid unnecessary fines.
Do you integrate CIS with payroll?
Yes, for contractors who run payroll and pay subcontractors, we integrate CIS with our payroll software, ensuring deductions and submissions are done in one smooth process.
Why choose Ivory Insight for CIS?
We’re experienced with both contractors and subcontractors, offering proactive advice, accurate submissions and CIS tax refunds handled quickly. Our fixed-fee packages give you complete peace of mind.
What are the CIS deadlines?
Contractors must submit their monthly CIS return to HMRC by the 19th of each month, covering all payments made to subcontractors in the previous tax month (which runs from the 6th to the 5th). Any tax deducted from subcontractor payments must also be paid to HMRC by the 22nd of the month if paying electronically (or the 19th if paying by post).
What is the Domestic Reverse Charge (DRC)?
The Domestic Reverse Charge is a VAT rule for the construction industry, introduced to combat VAT fraud. Under this rule, for certain construction services between VAT-registered businesses, the customer (contractor) accounts for the VAT instead of the supplier (subcontractor).
This means that the subcontractor does not charge VAT on their invoice but must state that the Domestic Reverse Charge applies. The contractor then accounts for both the input and output VAT on their VAT return.
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