The Construction Industry Scheme (CIS) is an HMRC tax deduction scheme for construction workers in the UK. Contractors must deduct money from payments to subcontractors and pass these payments to HMRC. These CIS tax deductions count towards the subcontractor’s tax and National Insurance. Self-employed individuals in the construction trades pay tax under the construction industry scheme.
At Augustus Payroll, we offer CIS services for both contractors’ and subcontractors’ payroll. Our payroll team will assist with deductions and submissions, ensuring every aspect of your payroll and tax is covered so you can stay compliant.
Exceptions: Roles such as surveying or architecture are not part of the scheme. Augustus Payroll can offer assistance to determine if your construction company is part of CIS.
At Augustus Payroll, we help both contractors and subcontractors with registration and all CIS compliance steps. Our clients can rest assured that their finances comply with CIS regulations and avoid time-consuming paperwork and admin.
You must register with HMRC as a CIS contractor before you pay subcontractors. Failing to verify subcontractors or submit monthly returns can result in fines and a higher rate of deductions.
If you are a subcontractor, registering means you avoid the 30% higher rate deduction. Registered CIS subcontractors are usually 20% deducted, provided HMRC verification requests confirm their status.
Standard Rate: 20% for registered subcontractors.
Higher Rate: 30% if the subcontractor’s tax status can’t be verified.
Gross Payment Status: Eligible subcontractors can apply to receive full payments with no deductions if they meet HM Revenue criteria.
With Augustus Payroll, you don’t need to do all this alone.
We will support you and your company with your CIS compliance.
Verify subcontractors with HMRC
Deduct the right amount
Complete and submit monthly returns under the scheme Issue deduction statements to subcontractors
Keep records for at least 3 years
Register with HMRC under the CIS
Keep a record of all deductions for self-assessment
Apply for Gross Payment Status if eligible
Our CIS payroll services will get subcontractors:
We simplify the payroll process so you can focus on your contracts and construction work, not paperwork.
Book a ConsultationAre you a contractor looking for reliable CIS services for your workers, or a subcontractor or sole trader needing help with CIS compliance and payments?
Contact Augustus Payroll today to discuss your construction business needs. Our payroll team will deal with the paperwork and guide you through registration, verification, and full payroll compliance.
Call us or fill out our quick enquiry form to get started.