CIS returns and subcontractor verification for Hampshire contractors
The Construction Industry Scheme catches out contractors and subcontractors alike: monthly returns, subcontractor verification, deduction statements and reclaiming the tax you've had withheld. We run the whole thing, so you stay compliant with HMRC and get back every pound you're owed. One of the six services we provide for limited companies.
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Monthly contractor returns filed with HMRC
Deductions verified and applied at the right rate
Subcontractors checked with HMRC before you pay
Over-deducted tax reclaimed for subcontractors
What are the CIS deduction rates?
Contractors deduct 20% from subcontractors registered with HMRC, 30% from those who aren't, and nothing from those with gross payment status. Deduct from the labour element only — strip out VAT, materials, plant hire and fuel first — and re-verify any subcontractor not included on a CIS return in the current or previous two tax years.
Correct for the 2026/27 tax year · last reviewed October 2026 · Chris Sullivan ACA
Check the subcontractor's status first, every time
This is the bit that costs contractors real money. You have to verify each subcontractor with HMRC before their first payment, and the answer comes back one of three ways: matched gross (deduct nothing), matched net (deduct 20%) or unmatched (deduct 30%). To run the check you need their name and UTR plus a National Insurance number, or the company registration number if they trade through a company. It takes a couple of minutes in the business tax account.
Guess instead, or carry over last year's rate, and deduct too little, and HMRC does not go after the subcontractor for the shortfall. It comes to you. I have seen firms pay the same tax twice: once to a subcontractor who was overpaid and then again to HMRC to make up the difference, with cash already tight. Verify, deduct on the labour element only, and keep the verification reference on file with the invoice.
One change worth knowing from 6 April 2026: HMRC can now remove a business's gross payment status straight away where it believes the business knew, or should have known, it was part of a supply chain involving tax fraud. The rates have not changed, but the compliance bar has, so keep your own records clean and your subcontractor checks current.
CIS returns, verification and deductions suffered, handled
If you pay subcontractors, work as one, or both, we keep you compliant and make sure deductions land in the right place.
Monthly contractor returns (CIS300)
If you pay subcontractors you must file a CIS return every month. We prepare and submit it on time, every time, avoiding the automatic £100+ late penalties.
MonthlySubcontractor verification
Before you pay a new subcontractor, HMRC must be checked to confirm their deduction rate. We verify every subcontractor so you deduct correctly.
ComplianceDeduction statements
We produce the monthly payment and deduction statements you're legally required to give each subcontractor: clear, compliant and on time.
StatementsSubcontractor rebate claims
Contractors deduct tax before paying subcontractors, which often means you've overpaid. We reclaim CIS suffered through your return, frequently producing a healthy refund.
RefundsGross payment status
We help eligible subcontractors apply for and keep gross payment status, so you're paid in full and settle tax through your normal return. A big cash-flow win.
Cash FlowCIS & the reverse charge
CIS and the VAT domestic reverse charge interact in ways that trip a lot of firms up. We make sure both are handled together, correctly.
VATCIS is included in the construction packages, from £275 a month
CIS returns are included as standard in our Construction sector package. On any other package, CIS is a straightforward monthly add-on, for contractors filing returns and subcontractors reclaiming deductions alike.
All packages include a Xero subscription (our recommended software) unless specifically agreed otherwise. View full package details →
Every construction client gets Xero set up to separate labour, materials and subcontractor costs, so CIS deductions are tracked correctly all year, not reconstructed at the deadline.
- CIS added to any Lumi package
- Monthly CIS300 returns
- Subcontractor verification
- Deduction statements
- CIS returns included
- VAT domestic reverse charge
- Job costing in Xero
- Statutory accounts & corporation tax
- CIS suffered reclaimed
- Self Assessment or company return
- Gross payment status help
- Refunds chased
All prices exclude VAT.
Why CIS needs a chartered accountant, not just software
You deal directly with a qualified ICAEW Chartered Accountant, not a call centre or a different junior every year.
ICAEW Chartered & qualified
Your accounts are prepared and reviewed by a Chartered Accountant.
Plain English, always
We explain what your numbers mean and what to do about them, in plain terms, without the jargon or the acronym-soup, and without pretending it's more complicated than it is.
Deadlines never missed
We work to your dates well in advance and chase what we need from you, so late-filing penalties simply don't happen.
Fixed monthly fee
Your accounts and tax sit inside one transparent monthly fee. We don't bill by the hour, and there's no nasty invoice waiting for you at year-end.
CIS questions contractors and subcontractors ask
Ready to hand CIS over?
Book a free 30-minute call. Contractor returns or subcontractor rebates, we'll take the Construction Industry Scheme off your hands.
CIS and construction guides
Jargon-free reads for construction businesses.
Figures, thresholds and deadlines on this page reflect UK rules current at the time of writing and are general information, not advice for your specific circumstances. Please get in touch before acting.
