CIS Filing Requirements

CIS Filing Requirements are mandatory for UK construction businesses under HMRC's Construction Industry Scheme. You must deduct tax from subcontractor payments and file regular returns to avoid penalties and ensure smooth cash flow.

Experience

Understanding the Construction Industry Scheme

The Construction Industry Scheme (CIS) requires contractors to deduct tax from payments to subcontractors for construction work. You must send these deductions to HMRC monthly.

CIS filing ensures HMRC tracks tax deductions, which subcontractors can offset against their tax bills. This scheme applies to most construction operations, from building to repairs.

10^th

Experience

10^th

Experience

What You Must File and When

CIS filing involves specific forms and strict deadlines. Here are the essential requirements to manage:

Monthly CIS returns (form CIS300) due by the 19th of each month following the tax month end.
Verify subcontractors with HMRC before the first payment to determine their deduction status.
Keep detailed records of all payments, deductions, and subcontractor details for at least 3 years.
File nil returns if no payments were made in a tax month to avoid penalties.
Provide payment and deduction statements to subcontractors within 14 days of the tax month end.
Apply correct deduction rates: 20% for registered subcontractors, 30% for unregistered ones.
Include VAT in the gross payment amount before calculating the CIS deduction.
Report any changes in subcontractor information, such as address or UTR number updates.
Use HMRC's online service or approved software for electronic filing to meet compliance standards.
Ensure accuracy in subcontractor UTR numbers and payment details to prevent HMRC queries.

10^th

Experience

10^th

Experience

Avoiding Common CIS Filing Mistakes

Common errors include missing filing deadlines, applying wrong deduction rates, or failing to verify subcontractors. Late returns incur automatic £100 penalties, and inaccuracies can lead to fines and interest charges.

If your CIS filings are complex with multiple subcontractors or irregular payments, professional advice ensures accuracy. Automated accounting solutions can help streamline this process and reduce manual errors.

10^th

Experience

10^th

Experience

Let's Connect

Get In Touch With Us

Call us at +44 7795 226823 or email [email protected] anytime. We're available outside normal hours for real-time assistance. Use our contact form for quick follow-ups, and we'll reply promptly.

Start with a free, no-obligation consultation to explore your options. We'll discuss your business needs, share insights on automation or tax savings, and outline how we can partner for growth. It's easy and straightforward to take the first step.

Get More Details

First Name *

Organization *

Phone

Email *

Enter your message

Captcha

Stay up to Date on Business & UK Finance

Worried you'll fall behind with what HMRC is up to? Never miss another change that affects your business again, by subscribing to our monthly newsletter.

Business Accounting and Tax Ltd provides automation-focused accounting, tax, and international services for small to medium businesses in Southampton and beyond. Contact us for a free consultation to grow your business.