Construction Industry Scheme (CIS)

CIS services support your compliance under the Construction Industry Scheme. If your UK company operates in construction as a contractor or subcontractor, you may need to register for CIS, verify subcontractors, deduct tax at source and submit monthly returns to HMRC.

We help overseas-owned UK subsidiaries and growing construction businesses manage CIS alongside payroll and corporation tax.

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3000+

companies helped successfully scale to the UK

25+

years of experience

52

employees all under one roof

CIMA & ACA

approved

What can we help you with?

CIS Advisory

CIS applies broadly across the construction sector and often catches businesses that do not consider themselves traditional contractors.

Our advisory support includes:

Assessing whether your business falls within CIS
Determining contractor or subcontractor status
Reviewing construction contracts and payment flows
Advising on gross payment status eligibility
Reviewing interaction between CIS and PAYE
Advising on penalties and compliance risks

We clarify your obligations before payments are made. Early advice reduces the risk of incorrect deductions or missed registration. These compliance areas often sit alongside broader UK tax requirements, including corporation tax, available through our Tax services.

CIS Registration and Deregistration

If you operate as a contractor, you must register with HM Revenue & Customs under CIS. Subcontractors must also register to avoid higher rate deductions.

We manage:

CIS registration for contractors
CIS registration for subcontractors
Applying for gross payment status where eligible
Setting up HMRC verification processes
Agent authorisations and online access

If your construction activity ceases, we support with:

Deregistering from CIS
Reviewing final contractor obligations
Confirming all submissions are up to date
Closing compliance with HMRC

This prevents ongoing filing requirements once your activity stops.

Monthly CIS Submissions

Contractors must verify subcontractors and submit monthly CIS returns to HMRC, even in months where no payments are made.

We handle:

Verifying subcontractors with HMRC
Calculating CIS deductions
Preparing monthly CIS returns
Submitting returns within statutory deadlines
Advising on payment of deductions to HMRC

We also review subcontractor invoices to confirm correct deduction rates are applied. This protects you from penalties and incorrect withholding.

Accompanying Payroll Submissions

CIS often interacts with PAYE payroll, particularly where workers move between subcontractor and employee status.

We support with:

Integrating CIS deductions into payroll systems
Reporting through Real Time Information (RTI) where required
Reconciling CIS suffered by subcontractors
Advising on reclaiming CIS deductions
Coordinating CIS and PAYE year-end reporting

Where we manage your payroll, CIS reporting becomes part of your standard compliance cycle rather than a separate process.

CIS for Overseas-Owned UK Construction Businesses

We regularly support:

Overseas-owned UK subsidiaries operating in construction
Property development groups engaging UK subcontractors
International companies entering the UK construction market
Growing contractors applying for gross payment status

CIS sits alongside payroll, corporation tax and VAT. We coordinate across these areas so your tax compliance remains aligned.

How our CIS services work

This structured approach keeps your corporation tax position clear, compliant and aligned with your business objectives.

We confirm whether CIS applies and define your contractor or subcontractor status.

We complete CIS registration and apply for gross payment status if relevant.

We prepare and file monthly CIS returns and manage deductions.

We align CIS with payroll and wider tax reporting.

How our CIS services work

This structured approach keeps your corporation tax position clear, compliant and aligned with your business objectives.

Meet our Head of Finance

Dom Morris

As our Head of Finance, Dom’s role is to oversee the teams that manage the delivery of fully compliant financial processes for our clients, as well as for advising them on the decisions that will help drive their businesses forward. He is responsible for the Finance teams across both the London and Warwick offices.

What Our Clients Say

Trusted by businesses from all around the world for expert company incorporation services

⭐⭐⭐⭐⭐

We have worked with Goodwille since starting up our UK branch and have nothing but great things to say about the collaboration. The team is always on top regarding delivery and helpfulness and every interaction is smooth and professional. We highly recommend Goodwille!

-EA

⭐⭐⭐⭐⭐

We have been working with Goodwille for the past 3 years, only amazing experiences. They help startups and scaleups that we bring from Nordic countries with their expansion to the UK market. All experts working at Goodwille have a great understanding of advising companies in their market-entry, helping them with every step along the way. We would recommend their services to anyone who needs a trusted partner in the UK market.

-ED

⭐⭐⭐⭐⭐

Nothing is too much trouble, Goodwille are our local UK Finance, HR and Administrative function enabling us to focus on doing our day jobs. We have a great relationship, but it is unobtrusive: we engage when needed, otherwise things just tick over. I have had direct engagement for the last two years as local GM. My organisation used them for at least a year prior to that.

-L

⭐⭐⭐⭐⭐

We have worked with Goodwille for over a year and they have assisted us in our UK launch. They are a valued and trusted partner with a can-do attitude and I would recommend them to any company looking to establish a company the UK market. As well as assisting with local issues Goodwille have excellent structures in place and work seamlessly with our Swedish head office.

-SH

CIS Success Stories

See how we’ve helped businesses with their CIS in the UK.

Helping Balco Manage CIS Requirements for UK Construction Projects

Balco is a European manufacturer and installer of open and glazed balcony systems used in residential construction and renovation projects, supplying developers, builders and housing associations across several European markets including the UK.

CIS Compliance Setup for Finnish Automation Firm Cimcorp in the UK

One of Europe’s leading fashion chains with 5,000 employees and nearly 500 stores. Established in 18 countries with a strong presence across the Nordics.

Supporting Envac with Construction Industry Scheme Compliance in the UK

Envac is a Swedish company that designs and installs automated pneumatic waste collection systems used in cities, airports, hospitals, and large developments. Their technology moves waste through underground tubes to a central collection point, reducing truck traffic, emissions, and manual handling.

Need help with your CIS?

Speak to a specialist today. Get immediate answers to your CIS questions and find out how we can help you get trading quickly.

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CIS FAQ’s

How does the CIS work with tax in the UK?

The Construction Industry Scheme (CIS) ensures that tax on construction payments is deducted at source and correctly reported to HM Revenue & Customs (HMRC). It simplifies compliance and reduces the risk of underpayment for subcontractors.

Key points:

Deductions at source – Contractors deduct 20% (registered) or 30% (unregistered) from subcontractor payments before payment is made.
Reporting – Contractors submit monthly CIS returns to HMRC detailing payments and deductions.
Tax credit – Deducted amounts are treated as advance income tax payments, which can be offset against the subcontractor’s annual tax liability.
Compliance – Proper CIS operation ensures subcontractors do not pay more tax than necessary and helps foreign-owned UK companies meet HMRC obligations.

Can you claim back CIS deductions in the UK?

Yes, subcontractors can claim back CIS deductions if too much tax has been deducted from their payments. HM Revenue & Customs (HMRC) allows refunds to ensure that subcontractors only pay the correct amount of income tax.

Key points:

Check your deductions – Review monthly CIS statements from your contractor to ensure accurate deductions.
Claim through HMRC – Submit a claim via Self-Assessment tax return or by contacting HMRC directly.
Timing – Refunds are usually processed after the end of the tax year or once HMRC has verified your total tax liability.
Eligibility – Only overpaid or incorrectly deducted amounts can be reclaimed; correct CIS deductions are not refundable.

Foreign subcontractors and UK-based subcontractors alike must retain records of payments and CIS statements to support any claims for repayment.

What are the penalties for not registering for the CIS in the UK?

Failure to register for the Construction Industry Scheme (CIS) can result in significant penalties from HM Revenue & Customs (HMRC) for both contractors and subcontractors.

Key points:

Financial penalties – HMRC can issue fines based on missed registrations or incorrect deductions, which can escalate depending on severity and duration.
Interest on unpaid tax – Any CIS deductions not made or reported accrue interest, increasing the total liability.
Legal enforcement – Repeated or deliberate non-compliance can lead to enforcement action, including audits and court proceedings.
Impact on subcontractors – Contractors failing to register may also face challenges with subcontractors claiming refunds or tax credits.

Foreign-owned UK companies must ensure timely CIS registration and ongoing compliance to avoid penalties, interest, and operational disruptions.

Does the CIS apply to foreign companies in the UK?

Yes, the Construction Industry Scheme (CIS) applies to foreign companies operating in the UK construction sector. Any business, regardless of ownership, that pays subcontractors for construction work in the UK must comply with CIS rules.

Key points:

Registration required – Foreign contractors must register with HM Revenue & Customs (HMRC) before making payments to subcontractors.
Tax deductions – CIS requires deductions of 20% for registered subcontractors or 30% for unregistered subcontractors.
Reporting obligations – Monthly CIS returns must be submitted to HMRC, detailing all payments and deductions.
Compliance risk – Failure to comply can lead to penalties, interest, and reputational risk for foreign-owned businesses.

Foreign-owned UK companies should implement robust payroll and accounting processes to ensure CIS compliance and avoid costly errors.

What is the Construction Industry Scheme in the UK?

The Construction Industry Scheme (CIS) is a UK tax framework administered by HM Revenue & Customs (HMRC) that regulates how payments are made to subcontractors in the construction industry. It ensures the correct income tax and National Insurance Contributions (NICs) are deducted at source.

Key points:

Who it applies to – Contractors and subcontractors working on construction projects, including foreign-owned UK businesses.
Deductions – Contractors must deduct 20% (registered) or 30% (unregistered) tax from subcontractor payments.
Registration – Both contractors and subcontractors must be registered with HMRC to comply with CIS rules.
Reporting – Contractors submit monthly returns detailing payments and deductions to HMRC.

CIS helps streamline tax compliance in the construction sector while reducing risk of underpayment or penalties.