CIS Accounting for construction industry workers

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Construction Industry Scheme Accountants

Construction Industry Scheme Services

If you work in the construction industry, whether as a contractor, subcontractor or on a construction site as part of your day-to-day duties, the work you carry out may fall under the Construction Industry Scheme.

CIS was created by HM Revenue & Customs (HMRC) in order to facilitate the collection of tax from construction industry workers. If you choose to operate as a CIS registered worker, it allows you to take advantages of a range of other benefits that come with being CIS registered.

As a construction worker you need to know what the CIS scheme is, what the genuine advantages and disadvantages of the scheme are and how you can go register for the scheme and starting making the most of it early on in your construction career.  

Our Calculator

Use our calculator to discover if you can maximise your take home pay with us.

If you work in the construction industry on a self-employed basis or as a cis subcontractor, your take home pay may be subject to CIS contractor deduction. We can talk you through this in a detailing personalised calculation.

Fill in the form below and see how we can help you:

Why have an accountant for a CIS registered limited company?

As with any method of working in the construction industry comes with some disadvantages, and the one disadvantage of a registered CIS limited company is the accounting and administration that comes with it.

There will be times when you need to complete paperwork, issue invoices and ensure your bookkeeping is up to date. This can be a burden of having a limited company, but you can easily reduce this by appointing a contractor accountant to help you.

Experts in CIS accounting can give you peace of mind and confidence.

How can we help?

By using an accountant for your CIS accounting, you will be able to take your mind off the paperwork and focus on your job and finding your next contract role.

Our limited company accounting service helps you run your contractor business with ease. We assist with:

  • Your CIS registration forms
  • Company Incorporation
  • Corporation Tax and PAYE Registration
  • VAT Registration (where applicable)
  • FRS Registration (where applicable and appropriate)
  • Your administration (monthly returns)

Other ways that our service helps simplify this process for you is by giving you access to our Client Web Portal, a secure and easy to use system for submitting expense claims, mileage and time sheets. We also provide you with unlimited free advice and support from our dedicated account teams and Personal Tax Return experts for the best tax advice for you.

What is the Construction Industry Scheme?

The CIS Scheme is a system for HMRC to collect tax from independent construction workers. However, what it means for you is having the ability to pay the right amount of tax under a stable and secure payroll system. The CIS also helps to ensure you don’t pay more tax than you should and gives you an easy and efficient method of receiving a rebate on any overpaid taxes.

All construction work carried out in the UK is covered by CIS, this could be your end client who hires you for a construction job and it can be you as an individual as well. Many construction workers prefer to set up and run their own CIS-registered limited company.

Advantages of your CIS Registered Limited Company

The main benefits of operating a CIS registered limited company for your construction career are:

  • Monthly deduction of only 20% as opposed to 30% if you are not CIS registered 
  • The chance to apply for gross payment status and once you are on gross payment status you can enjoy the additional payment benefits of a limited company
  • The option to pay yourself a dividend as the shareholder of your own limited company
  • Making expense claims such as tools and equipment for your construction work
  • Tax relief on pension contributions
  • Additional tax savings and flexibility and control over your finances as you can see on our limited company page such as application to join the Flat Rate Scheme (if appropriate for the nature of your work), and long-term tax planning

What happens if you are not registered?

If you choose to not register under CIS, you will increase your tax liability as your deductions will be higher. 30% income will be deducted from your pay at source. Whilst you can claim business related tax deductible expenses to receive corporation tax relief if you are not registered, the higher tax deductions from your income at source would be a big disadvantage of not registering your limited company under the scheme.

Architectural plans with a hard hat

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