As CIS accountants, we help you to navigate the

complexities of the Construction Industry Scheme

(CIS) on your behalf. The CIS, implemented by HM

Revenue and Customs (HMRC), is designed to

regulate tax obligations within the construction

industry and ensure compliance among contractors

and subcontractors. However, despite its intention

to streamline processes and enhance transparency,

dealing with the CIS can be a daunting task, prone

to potential pitfalls.

In this blog post, we will explore some of the most

common mistakes that you will encounter when

operating under the Construction Industry Scheme.

By shedding light on these stumbling blocks, we

aim to equip you with the knowledge and insights

necessary to sidestep these errors.

Not verifying subcontractors’ status

Before you can pay a new subcontractor, it is

important that you verify their status with HM

Revenue and Customs (HMRC).

By verifying them, you will;

Confirm that they are registered for the

Construction Industry Scheme (CIS)

Confirm what rate of deduction to use or if you

can pay them without making any deductions.

If you need to verify a subcontractors’ status, then

read our blog post “How do you verify your status

as a subcontractor“

Not applying the correct deduction

rate

When you pay a subcontractor, you will usually

make some deductions from their payments. This

rate can vary depending on the subcontractor.

By verifying the status of a subcontractor (see

above), you will be able to confirm what deduction

rate (if any) to use.

Not filing returns on time

It is important that you file your CIS tax return on

time to avoid any penalties. If you need help to file

your returns, then do not hesitate to contact us

below.

Contact Us

Common mistakes when dealing with Construction Industry Scheme (CIS)