Accountant and client shaking hands


CIS tax return filing can be complicated and frustrating. We’re proud to support workers who engage in construction operations and give them the advice and guidance they need.
Construction workers


The Construction Industry Scheme (CIS) impacts multiple businesses involved in the construction sector, from contractors and sub-contractors to suppliers and those in ancillary industries. While it’s a big step forward in streamlining the UK economy, its nuances can be hard to understand on your own.

That’s why we at Lyel Accountants offer tailored CIS services to help your business flourish. So what is CIS? Essentially, it applies to payments made for construction work. As a contractor, you must make tax deductions from your payments to your subcontractors and then pass them on to the HMRC. This only works, however, if the subcontractors are registered with the taxman. CIS applies to you if you are:
  • A contractor
  • A subcontractor (i.e. you work with a contractor on a self-employed basis or as a limited company)
  • Both a contractor and a subcontractor (which could happen if your company works for a bigger contractor and then subcontracts to others)
  • A business that spends over £1 million annually on construction work
Here’s how CIS works for you if you are a contractor:
  • First, you need to register with HMRC.
  • Then, check your subcontractor’s employment status and whether they are self-employed or employed with you. In the latter case, you must pay them via PAYE like your regular employees.
  • If they are self-employed, check whether they are registered with HMRC as a subcontractor. If their registration is confirmed, HMRC will tell you whether to pay them the gross amount or make a standard deduction of 20%.
  • If HMRC can’t confirm their registration, you must make a 30% deduction.
At Lyel Accountants, we’re highly experienced in all areas of the construction industry and can manage the intricacies of the unique CIS tax return rules well! We work with many sub-contractors to ensure they benefit from their CIS status. Get in touch
Construction workers


It’s vital to stay fully compliant with HMRC regulations about CIS deductions from day one. Luckily, Lyel’s dedicated CIS accounting services help you do exactly that. The services we offer include the following:

  • Maintaining subcontractor records
  • Verifying subcontractors online with HMRC
  • Dealing with any issues related to CIS claims
  • Preparing and submitting your monthly CIS returns
  • Confirming the deduction rate for your subcontractors
  • Advising you on your payment obligations and their due dates to avoid any penalties
So, what are you waiting for? We want you to be able to do your business comfortably. Get in touch with our CIS accountants and minimise your hassle! Get in touch

    Contact Us Today

    For more details on how we handle your data, please view our Privacy Policy