CIS Returns for UK Contractors and Subcontractors
Most contractors do not have a problem doing CIS. They have a problem doing it on time, every month, while running a site. One missed verification, one wrong deduction rate, one return filed late — and HMRC penalties start at £100 and climb fast.
We do it differently.
NDCA handles CIS for UK contractors and subcontractors in the construction industry — from sole-trader bricklayers to limited company main contractors with dozens of subcontractors on the books. We are ACCA-regulated and we charge a fixed monthly fee so your CIS returns are filed on time, every month, without you having to remember.
Contact us today for a free consultation to walk through your situation.
What our CIS service covers
A dedicated accountant handles the whole CIS process. That includes:
For contractors:
- CIS registration with HMRC
- Subcontractor verification before every first payment
- Monthly CIS return preparation and filing with HMRC (CIS300)
- Payment and deduction statements issued to each subcontractor
- CIS payments calculated and tied into payroll where required
- Domestic Reverse Charge VAT treatment on qualifying supplies
- Gross payment status applications and reviews
For subcontractors:
- CIS registration with HMRC for the right deduction rate (20% rather than 30%)
- Gross payment status applications where the criteria are met
- CIS refund claims through self assessment or limited company corporation tax
- Reconciliation of payment and deduction statements against your own records
- Tax returns built around CIS deductions already suffered
If you act as both contractor and subcontractor — common for limited companies working up and down the supply chain — we handle both sides under one fee.
How NDCA works
Three things make our CIS service different.
- Fixed monthly fee
Your monthly CIS return is not a per-filing invoice. It is built into the fixed monthly fee we agreed when you joined. Twelve returns a year, predictable cost. - A real human, fast
A named accountant handles your CIS. No ticket queue. Most queries get a same-day reply, which matters when you have a new subcontractor starting on site tomorrow morning. - Filed on time, every month
CIS returns are due by the 19th of every month, even if you have made no payments to subcontractors. We track the deadline, prepare the return, and file it before you need to think about it.
The right tool for the job
Most of our services run on Xero. CIS is one of the few exceptions.
Xero handles CIS for some contractors well — straightforward subcontractor lists, simple deduction profiles, clean monthly cycles. For everyone else, dedicated CIS software is faster and more accurate. We use specialist CIS tools where they outperform Xero on subcontractor verification, monthly returns, and deduction statements.
The decision is based on your setup, not ours. After the first call we tell you which platform we’ll run your CIS on and why. You get the same fixed monthly fee either way.
If you’re already on Xero for everything else, your CIS data still flows back so the bookkeeping, VAT, and year-end picture stays connected.
Apron for invoice capture
Subcontractor invoices and materials receipts are where CIS errors usually start. Materials charged separately from labour need to be excluded from the CIS deduction calculation. Mixed invoices need splitting. Missing invoices mean the wrong deduction.
We use Apron to stop that. Subcontractors and suppliers send invoices to your dedicated Apron email address, and the supplier, date, amount, VAT and line items are pulled out automatically and pushed into Xero. Materials and labour are visible on every invoice, so the CIS deduction is calculated on the right figure first time.
For our clients, that means CIS returns that match the subcontractors’ own records — no disputes, no end-of-year reconciliation surprises.
Who we work with
NDCA CIS clients fall into a few groups:
- Sole-trader subcontractors — bricklayers, electricians, plumbers, plasterers, joiners
- Limited company subcontractors trading through their own company
- Main contractors running sites with multiple subcontractors
- Property developers contracting work out to trades
- Construction firms that operate as both contractor and subcontractor
- Trades applying for gross payment status
If your situation is not on the list, send us a message — it almost certainly fits.
CIS return due soon?
CIS returns are due by the 19th of every month — including nil returns. Penalties for missed returns start at £100 and climb. Send us your details — we'll come back within one working day with a fixed monthly quote.
Reviews
Discover why businesses trust us for dependable accounting services and practical financial advice.
Switching from another accountant
If you already have an accountant and you are not happy, switching is simpler than people think. We send your current accountant a professional clearance letter, collect your records, and pick up where they left off. Most clients are fully on-boarded within two weeks.
You do not need to wait for the next CIS month. You do not need an awkward phone call. We handle it.
CIS FAQs
NDCA fees depend on whether you are a contractor, subcontractor or both, the number of subcontractors on your books, and what else is bundled in (bookkeeping, payroll, year-end accounts). You get a fixed monthly price upfront, not a per-return invoice. Get a quote on 01903 968618.
CIS is a tax scheme run by HMRC where contractors deduct money from a subcontractor's payments and pass it directly to HMRC. The deductions count as advance payments towards the subcontractor's tax and National Insurance. CIS applies to most construction work in the UK.
Registered subcontractors are deducted at 20%. Unregistered subcontractors are deducted at 30%. Subcontractors with gross payment status are paid in full with no deduction. We register every new subcontractor before their first payment to keep them on the 20% rate.
CIS returns are due by the 19th of every month, covering payments made to subcontractors in the previous tax month (6th to 5th). A return is required every month, even if you have made no payments — a nil return — to avoid the £100 late filing penalty.
Gross payment status lets a subcontractor receive payments without any CIS deduction at source. HMRC sets turnover, compliance and business tests for the application. We assess whether you qualify and handle the application.
Often, yes. CIS deductions are payments on account of tax. Sole traders reclaim any overpayment through self assessment. Limited companies offset CIS suffered against PAYE or claim a refund after year-end. We handle the reclaim as part of the year-end work.
For VAT-registered businesses, the Domestic Reverse Charge applies to most CIS-qualifying supplies between VAT-registered contractors and subcontractors. The supplier does not charge VAT — the customer accounts for it on their own return. We cover this on the VAT returns page.
Contractors need verification details for every subcontractor, payment records showing gross amount, materials cost, labour cost and deduction, and copies of every payment and deduction statement issued. Subcontractors need to keep every statement received from every contractor. We hold all of this in Xero.
HMRC charges an automatic £100 penalty for a return filed one day late, with further penalties at two months, six months and twelve months. Repeated late filing can also affect gross payment status. We file every month before the deadline.
Xero, exclusively. We are a certified Xero Partner. CIS deductions are calculated in Xero, the monthly return is filed directly to HMRC, and payment and deduction statements are generated from the same data.
Yes. NDCA is regulated by the ACCA (Association of Chartered Certified Accountants).
We are remote first. We work with clients across the UK using Xero, so location does not matter.
Yes. Book one on 01903 968618 or via the contact form.
Ready to hand over your CIS?
Most contractors give us their subcontractor list once and never think about the 19th again. We verify new starters, calculate deductions, file the return on time, and chase up missing payment and deduction statements. Send us a few details — we'll come back within one working day with a fixed monthly quote.
