CIS Returns for Contractors & Subcontractors

If you work in construction, the Construction Industry Scheme adds a layer of tax rules that catch a lot of businesses out. Whether you are a contractor deducting tax from subcontractors, or a subcontractor having tax taken from your pay, getting CIS right matters, and getting it wrong means penalties or overpaid tax sitting with HMRC. At BAA Group, we handle your CIS returns and the whole scheme for you, so you stay compliant, your subcontractors are dealt with correctly, and you claim back every penny you are owed.

Led by Ben Brophy ACA, we bring over a decade of experience and a friendly, jargon-free approach. We know construction, we know CIS, and we make it simple.

Sort your CIS with BAA Group → Contact Us

What Is the Construction Industry Scheme?

The Construction Industry Scheme, or CIS, is a set of HMRC rules for how payments are handled between contractors and subcontractors in the construction sector. Under the scheme, contractors deduct money from a subcontractor’s payments and pass it to HMRC. These deductions count as advance payments towards the subcontractor’s tax and National Insurance.

If any of this applies to you, CIS almost certainly does too:

You pay subcontractors for construction work, which makes you a contractor
You carry out construction work for a contractor, which makes you a subcontractor
You do both, which is very common in the industry

The scheme covers most construction work in the UK, and the rules on deductions, verification, and returns are strict. That is where we come in.

CIS for Contractors

If you pay subcontractors, you have a set of monthly obligations under CIS. We handle all of them:

Verifying subcontractors with HMRC to confirm the correct deduction rate
Calculating deductions at the right rate, whether that is 20 percent, 30 percent, or gross
Filing your monthly CIS returns with HMRC, on time
Providing deduction statements to your subcontractors
Keeping you compliant and clear of penalties

Monthly CIS returns are due by the 19th of each month, and late filing brings automatic penalties that start immediately. We make sure yours are always filed correctly and on time.

CIS for Subcontractors

If you are a subcontractor, tax is deducted from your payments before you receive them, often at 20 percent, or 30 percent if you are not registered. The problem is that this frequently results in you overpaying tax across the year, especially once your expenses are taken into account. Many subcontractors are owed a refund and never claim it.

We help subcontractors:

Register with CIS correctly, so you are deducted at 20 percent rather than 30 percent
Keep proper records of income and deductions
Claim your expenses in full to reduce your tax
Reclaim overpaid CIS tax, often resulting in a welcome refund
Complete your Self Assessment, where your CIS deductions are reconciled

Applying for Gross Payment Status

If you qualify, gross payment status means contractors pay you in full with no CIS deductions, and you settle your tax through Self Assessment or Corporation Tax instead. This can significantly improve your cash flow. We can check whether you qualify and handle the application for you.

CIS and Payroll Together

Many construction businesses run payroll for employees and CIS for subcontractors at the same time, and the two need to be handled correctly side by side. We manage both together, so your whole workforce, employed and subcontracted, is dealt with properly.

Why Choose BAA Group for CIS Returns?

Always on time. Monthly returns filed by the deadline, every month.
Refunds claimed. For subcontractors, we make sure you get back every penny you are owed.
Correct deductions. The right rate applied, with proper verification.
Construction know how. We understand the sector and its quirks.
Jargon-free. We explain CIS in plain English.
Joined up. CIS connects with your Self Assessment, accounts, and payroll seamlessly.

How It Works

Free consultation. We work out how CIS applies to you, as contractor, subcontractor, or both.
We get you registered. Correctly set up with HMRC at the right deduction rate.
We handle the monthly cycle. Verification, deductions, statements, and returns.
We reconcile and reclaim. Through Self Assessment, including any refund due.
We keep you compliant. Ongoing, with every deadline met.

Frequently Asked Questions

Who needs to register for CIS?

Contractors who pay subcontractors for construction work must register. Subcontractors do not have to register, but if they do not, tax is deducted at 30 percent rather than 20 percent, so it almost always pays to register. We handle registration either way.

When are CIS returns due?

Contractors must file monthly CIS returns by the 19th of each month. Late filing brings automatic penalties, so we make sure yours are always on time.

Can I claim a CIS tax refund?

Very often, yes. Subcontractors regularly overpay tax through CIS deductions, especially once expenses are accounted for. We reconcile this through your Self Assessment and claim back what you are owed.

What is gross payment status?

It allows contractors to pay you without deducting CIS tax, improving your cash flow, with your tax settled later through Self Assessment or Corporation Tax. We can check if you qualify and apply for you.

Can you handle my CIS and my accounts together?

Absolutely. CIS ties directly into your Self Assessment and accounts, and handling them together is exactly how it should be done. We manage the whole picture.

Ready to Get Your CIS Sorted?

Let’s get your CIS returns filed on time, your deductions right, and any refund you are owed safely back in your pocket, whether you are a contractor, a subcontractor, or both.

Get in touch with BAA Group today → Contact Us