Construction Industry Scheme (CIS)

Help with Construction Industry Scheme (CIS) tax and accounting.

Construction Industry Scheme (CIS)

  • CIS is only deducted on labour and not materials that a subcontractor purchases.
  • Subsistence and travel expenses paid to a subcontractor fall into CIS as if they were labour so CIS must be deducted.
  • CIS is based on the tax year from the 6th of April to the following 5th April the next year. It is not based on your accounting year.
  • In your year end accounts CIS does not affect your profit and loss it is only relevant to the Balance Sheet.
  • CIS works on a cash basis, when actual payments are made and received not when invoices are issued. The monthly CIS return and statements show the actual payments made during the period not the invoices created.
  • There are two different rates of CIS. If you are a subcontractor then you need to register with HMRC so that your contractors only deduct the lower rate of CIS. If you do not register with HMRC your contractors will have to deduct the higher rate of CIS.

Our CMJ Accountancy service offers full CIS support.

If you are a subcontractor then we will prepare your end of year tax return to ensure you have not over paid CIS and will advise on claiming any overpayment back.

If you are a contractor then we will prepare your monthly CIS300 return and send CIS statements to each of your subcontractors. We will advise you on the amount of CIS you need to pay each month or each quarter and how and when to make the payment. When it comes to year end we will prepare your tax return showing the balance of your CIS account and if any CIS repayment is due from HMRC we will advise you on claiming this back.

For further help, or to enquire about joining our services, please call us on 0845 834 0264 or drop us an email at


This information is for general information only. We take no responsibility for any action taken or refrained from in consequence of its contents. Always seek our professional advice specific to your circumstances before acting.