CIS Returns & Subcontractor Verification
For contractors in the construction industry: monthly CIS returns, subcontractor verification and deduction statements, handled for you.
Keep on top of the Construction Industry Scheme
If your business pays subcontractors for construction work, you will usually need to be registered as a contractor under the Construction Industry Scheme (CIS). That means verifying each subcontractor with HMRC, making the right deductions, sending a monthly return and giving each subcontractor a statement of what was deducted.
It is routine work, but it has to be done every month and on time. Late or incorrect returns can lead to penalties. We take care of the process so your records stay in order and your returns are filed when they are due.
What CIS involves
As a contractor under CIS, your monthly obligations typically include:
- Verifying new subcontractors with HMRC before you pay them
- Applying the deduction rate HMRC confirms for each subcontractor
- Filing a monthly CIS return, including nil returns where required
- Issuing payment and deduction statements to subcontractors
- Keeping records of payments, deductions and verifications
- On each monthly return you must declare that the subcontractors listed are not employees. HMRC can charge a penalty of up to £3,000 if you give the wrong employment status for a subcontractor.
We will confirm with you which of these apply to your business and how CIS interacts with your payroll and VAT.
Who it's for
This service is for businesses that pay subcontractors for construction work, including:
- Builders, developers and main contractors
- Trades businesses that use subcontractors
- Businesses newly registering as a CIS contractor
- Contractors who have fallen behind on returns
What you get
We handle the CIS paperwork for you, including:
- CIS registration as a contractor, where needed
- Subcontractor verification with HMRC
- Monthly CIS returns filed on time
- Payment and deduction statements for subcontractors
- Reconciling CIS with your payroll and bookkeeping
- Dealing with HMRC queries about your returns
How our CIS service works
- Review your set-up
We review your current set-up, subcontractors and any outstanding returns. - Agree a routine
We agree a monthly routine for sending us payment details. - Verify subcontractors
We verify any new subcontractors with HMRC before you pay them. - Monthly return filed
We prepare and file your monthly CIS return and send deduction statements. - Records reconciled
We keep your records reconciled with your bookkeeping and payroll.
What we need from you
- Your CIS contractor registration details and employer PAYE reference, or the details to register you
- Names, UTRs and business details of your subcontractors
- A list of payments to subcontractors each month, with any materials costs
- Details of any outstanding returns or HMRC letters
Timescales and key dates
- The CIS tax month runs from the 6th of one month to the 5th of the next
- Monthly returns are due by the 19th of the following month
- CIS deductions are paid to HMRC with your PAYE bill, by the 22nd of the following tax month if you pay electronically (the 19th if you pay by cheque by post)
- A late return carries a £100 penalty, rising the later it is
- Payment details should reach us by an agreed date each month, usually the 10th
How it works
Your first conversation is a Discovery & Scoping Call. Its purpose is to understand your situation and agree where IB&Co can help. From there, the process follows five clear steps.
Discovery
We start by understanding your circumstances and objectives.
Scope
We identify the areas requiring further consideration.
Review
Where appropriate, we undertake a detailed advisory review.
Recommendations
We provide professional guidance based on the agreed scope of work.
Ongoing Support
Where required, we provide ongoing planning and advisory support.
Meet your adviser
Ishmael Bangura, Managing Partner
Other services for small and medium businesses
CIS often sits alongside your payroll and bookkeeping. Explore our other services for growing businesses below.
Bookkeeping Services
For small and medium-sized businesses that want their books kept properly. We keep your records accurate and up to date, so your returns, accounts and reports are built on reliable figures.
Payroll Management
For employers of any size, including sole directors. We run your payroll, issue payslips and make your submissions to HMRC, so your staff are paid correctly and on time.
Management Accounts
For business owners who want to know how things are going during the year. We prepare regular management accounts with clear commentary, so you can make decisions without waiting for the year end.
End of Year Accounts
For limited companies of all sizes. We prepare your year-end accounts and file them with Companies House and HMRC, with practical advice along the way rather than just a set of figures.
Auto-enrolment Re-declaration
For employers approaching the third anniversary of their automatic enrolment duties. We re-assess your staff, re-enrol those who qualify and complete your re-declaration with The Pensions Regulator.
Virtual FD & Cash-flow Forecasting
For growing businesses that need senior financial input without a full-time hire. A part-time finance director builds rolling cash-flow forecasts and meets you monthly, so you can plan ahead.
Frequently Asked Questions
We will check your activities and tell you whether CIS registration applies to you.
We check each new subcontractor with HMRC before payment so the right deduction rate is applied.
HMRC charges a £100 penalty for a return that is one day late, with further penalties if it is 2, 6 and 12 months late. We file on a monthly routine to help you meet the deadline.
Yes. We can review what is outstanding and agree a plan to bring your returns up to date.
HMRC tells you the rate when you verify a subcontractor: usually 20% for registered subcontractors, 30% for those not registered, or no deduction for subcontractors with gross payment status.
Yes. You file a nil return, or tell HMRC that you have stopped using subcontractors for a while. We can do this for you.
Fees are agreed in advance, after your Discovery & Scoping Call, based on the scope of work. You will receive a written proposal before any work starts.
Request a callback
Prefer us to call you? Leave your details, the service you are interested in and a convenient time, and a member of the IB&Co team will call you back to talk through your circumstances.
Let us take care of your CIS returns
Book a Discovery & Scoping Call to talk through your subcontractors and current set-up, or ask for a quote and we will come back to you with a proposal.
Checked on 30 October 2026.