CIS Compliance Without the Headache
Expert CIS accountancy services for construction workers, recruiters, and end clients across the UK
CIS for self-employed sole traders
We support self-employed sole traders operating under the Construction Industry Scheme with complete services to keep you compliant and financially secure. Our service includes CIS registration support, processing of gross payments with correct tax deductions; Supervision, Direction and Control (SDC) assessments; Self-Assessment Tax Return support; and expert advice on allowable expenses.
What is the Construction Industry Scheme?
The Construction Industry Scheme (CIS) is an HMRC initiative to ensure proper tax collection within the construction sector. Under CIS, contractors deduct money from payments to subcontractors and pass it to HMRC as advance payment towards tax and National Insurance. The scheme applies to most UK construction work, including building, altering, repairing, groundwork, demolition, and installation of heating, lighting, and ventilation systems. Non-compliance may result in significant fines and penalties.
Why choose Brookson for CIS services?
Comprehensive CIS solutions for every need
30+ years of specialist expertise
Brookson has supported construction workers, recruiters, and end clients since the early 1990s. Our deep sector understanding means we anticipate challenges and provide proactive solutions.
Complete range of trading options
Whether you work as a self-employed sole trader, through an umbrella company, or via your own limited company, we provide tailored CIS accountancy services.
Clear, jargon-free expert advice
Construction compliance can be complicated. Our specialists explain everything in plain language, ensuring you understand your obligations and options.
Nationwide coverage, personal support
Access specialist support, with direct access to experts when you need them.
Proactive off-payroll legislation compliance
We stay ahead of legislative changes, including IR35 reforms, ensuring you remain compliant as regulations evolve.
Straightforward, speedy setup process
Getting started with Brookson is simple. Our streamlined registration process means you can be set up and working compliantly in days.
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Frequently Asked Questions
Find answers to common questions about our accountancy services.
When does CIS apply?
CIS applies to most construction operations carried out in the UK, including building, altering, repairing, extending, demolishing, and dismantling structures. The scheme covers groundwork, civil engineering, and even activities like internal cleaning and landscaping during the construction phase.
CIS applies to contractors and subcontractors operating as sole traders, partnerships, or limited companies within the construction industry. “Contractors” include property developers, local authorities, housing associations, and any organisation spending more than £1 million on construction work over a three-year period.
What work is not covered by CIS?
Certain activities fall outside CIS scope, even on construction sites. Excluded work includes shipbuilding (classified as vehicle construction), installing IT or security systems during fit-outs, work by architects, quantity surveyors, and design consultants, support services such as operating canteens, hostels, or providing security, and delivering building materials or road-making equipment.
If you are unsure whether your work falls within CIS scope, our specialists can provide guidance. HMRC also publishes detailed guidance online and operates helplines for specific queries.
What are the CIS tax rates?
HMRC uses three deduction rates under CIS:
- Gross payment status (0% deduction): Available to subcontractors who meet HMRC’s qualifying tests, including business structure requirements, minimum turnover thresholds (£30,000 for sole traders), and full tax compliance.
- Standard rate (20% deduction): Applied to payments for fully registered CIS subcontractors, calculated on labour costs excluding VAT and materials or plant hire.
- Higher rate (30% deduction): Applied to payments for subcontractors not yet fully registered under CIS, calculated on labour costs excluding VAT and materials or plant hire.
Contractors must provide CIS vouchers or certificates confirming deductions made and submit monthly returns to HMRC.
How is CIS operated in practice?
CIS operates through the construction supply chain. Using a typical example, a contractor (such as a housing authority) appoints a main subcontractor (such as a construction company), who arranges project execution using their own staff plus additional resources. They engage recruitment agencies to supply temporary workers, who contract with CIS-registered intermediaries like Brookson to process payroll compliantly.
Before making payments, contractors must verify subcontractors’ employment status and check whether HMRC verification is required. Once verification is complete, contractors deduct tax at the appropriate rate on payments made. Each party in the supply chain is responsible for verifying the next level of subcontractors they engage.
What are my responsibilities under CIS?
At the end of each tax year, self-employed subcontractors must submit a Self-Assessment Tax Return, whilst company contractors submit a Corporation Tax Return. HMRC calculates tax and National Insurance due, offsetting any CIS deductions already made.
To claim rebates of CIS tax payments, you must retain all CIS vouchers or certificates as evidence of deductions. HMRC does not provide these details, so maintaining accurate records is essential. You should also retain receipts for allowable business expenses that can reduce your tax liability.
Brookson provides support with Self-Assessment completion and helps ensure you claim all eligible expense deductions.
What happens if I do not comply with CIS?
HMRC operates a strict penalty regime for CIS non-compliance. Contractors must maintain up-to-date books and records, submit returns on time, and make CIS tax payments promptly. Late submissions and payments result in automatic penalties that increase with continued non-compliance.
Working with Brookson helps you avoid these penalties by ensuring all obligations are met correctly and on time.
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