Construction businesses in Swinton, Salford, and across the UK must carefully manage deadlines under HMRC’s Construction Industry Scheme (CIS). Missing monthly filing or payment deadlines can result in significant penalties, interest charges, and reputational harm. At Co‑gency Chartered Accountants, we offer detailed support to help you stay compliant and maintain solid cash flow.
Understanding CIS Obligations
Under CIS, contractors must:
- Register as a CIS contractor before engaging subcontractors
- Verify subcontractor status with HMRC
- Make correct deductions (20% for registered, 30% for unregistered, or 0% for gross-status subcontractors)
- File monthly CIS returns detailing payments and deductions
- Maintain accurate records
Detailed contractor obligations can be found on HMRC’s guidance: CIS contractor responsibilities – GOV.UK.
Monthly Return Deadline – 19th of the Month
A CIS monthly return covering the tax period (6th of one month to 5th of the next) must be submitted by the 19th of the following month. For example, for the period 6 January to 5 February, the return is due by 19 February. Returns can be filed via HMRC’s CIS online service or approved commercial software. Even if no payments occur, a nil return or inactivity request is still required. See more: File your monthly returns – GOV.UK.
CIS Payment Deadline – 22nd (or 19th by Post)
Any deductions made must be paid to HMRC monthly by the 22nd if paid electronically, or the 19th if paid by post. These payments are made alongside PAYE and National Insurance. HMRC clarifies payment timing here: Pay CIS deductions to HMRC – GOV.UK.
Penalties for Missed Deadlines
Late returns or payments incur strict penalties from HMRC:
- £100 for one day late
- £200 after two months
- £300 or 5% of deductions after six months
- £300 or 5% of deductions at twelve months
- Up to £3,000 or 100% of deductions if filing is over a year late
These penalties are outlined by HMRC: Penalties for failure to file – GOV.UK.
Payments made after deadlines may attract interest and additional penalties as per HMRC PAYE rules. For more, refer to: CIS payment deadlines – GOV.UK.
The Impact of Non-Compliance
Failing to meet CIS deadlines can:
- Result in costly fines and interest
- Disrupt cash flow management
- Damage your reputation with HMRC and subcontractors
- Increase HMRC scrutiny and risk of audit
How Co‑gency Ensures Compliance
Our tailored services for Swinton and Salford contractors include:
- Deadline Monitoring – Automatic reminders for the 19th and 22nd
- Record Management – Organised subcontractor data, payment logs, and deductions
- Filing & Payment Handling – Accurate and timely digital filings
- Penalty Support – Assistance with “reasonable excuse” appeals
- Strategic Advice – Integrating compliance into broader financial planning
Practical Tips for Contractors
- Use CIS-compliant software like Xero or QuickBooks to automate filings
- Set internal reminders in advance of deadlines
- Archive subcontractor documentation securely for at least three years
- Maintain regular contact with your accountant to stay updated
Local Support for Swinton & Salford Businesses
Contractors face unique pressures in Salford and Swinton—seasonal work, tight budgets, and high subcontractor reliance. Our local expertise ensures you meet HMRC expectations while running your business smoothly.
Get Help Today
Keep your business compliant and penalty-free with proactive CIS management. To discuss how Co‑gency can support your deadlines and accountancy needs:
- Visit: Co‑gency Chartered Accountants
- Contact us: Get in touch