From Registration to Reclaim: How CIS Accountancy Services Support Construction Workers

For construction workers and subcontractors in Swinton and Salford, understanding and complying with the Construction Industry Scheme (CIS) is crucial. The CIS is a tax deduction scheme that applies to contractors and subcontractors operating in the UK construction sector. While it aims to reduce tax evasion, it can also create administrative challenges for those unfamiliar with HMRC’s regulations.

At Co-gency Chartered Accountants, we provide dedicated CIS accountancy services designed to streamline the entire process—from registration to reclaiming tax—ensuring compliance, accuracy and improved cash flow for our clients.

The Construction Industry Scheme was introduced by HM Revenue & Customs (HMRC) to tackle non-compliance and underreporting of income in the construction sector. Under this scheme:

• Contractors must register with HMRC and deduct money from a subcontractor’s payments, which is then passed to HMRC as advance payments towards the subcontractor’s tax and National Insurance.
• Subcontractors may be registered or unregistered. Registered subcontractors are taxed at 20%, while unregistered subcontractors face deductions of 30%.

CIS covers most construction work, including site preparation, demolition, building work, repairs, decorating, and installations. However, certain professional services—such as architecture or surveying—are exempt.

Further guidance is available from HMRC here.

Subcontractors must register for CIS if they wish to be taxed at the standard 20% rate instead of the higher 30%. Co-gency’s CIS accountants assist subcontractors and contractors in Swinton and Salford by ensuring correct registration with HMRC and advising on best practices to maintain compliant status.

For contractors, we handle registration and help set up the necessary administrative systems to track payments, submit monthly CIS returns, and issue payment and deduction statements to subcontractors.

One of the key challenges contractors face is the monthly submission of CIS returns to HMRC. These returns must include:

• The names and Unique Taxpayer References (UTRs) of all subcontractors paid that month
• The total amount paid
• Amounts deducted and reasons for any zero deductions

Failure to meet deadlines or inaccuracies in submissions can result in fines and investigations. Our CIS accountancy services include full management of monthly returns, ensuring everything is filed on time and in line with HMRC’s standards.

Learn more about CIS monthly returns from this GOV.UK resource.

For subcontractors, the deductions made by contractors are essentially advance tax payments. Many subcontractors end up overpaying tax throughout the year and are entitled to a refund.

Our experienced CIS accountants at Co-gency help ensure that all allowable expenses are claimed—from tools and materials to travel and protective clothing—maximising tax reliefs and ensuring a swift refund after submitting a self-assessment return.

We also assist in cases where subcontractors are both contractors and subcontractors—a common scenario in the industry—providing advice on how to manage dual obligations and avoid compliance pitfalls.

For limited companies operating within the construction sector, the CIS rules can be more complex. Payments made to subcontractors must still comply with CIS, but the company’s own tax affairs must also be managed effectively, including Corporation Tax, VAT, and PAYE obligations.

We offer tailored solutions for limited companies, helping them manage CIS compliance while also taking care of broader business tax and accountancy needs.

With the push towards digital tax compliance under Making Tax Digital (MTD), contractors and subcontractors must be ready to use digital tools to report earnings and submit returns. While MTD for Income Tax Self Assessment (ITSA) will not fully roll out until April 2026, it’s important to prepare early.

Learn more about MTD for ITSA on GOV.UK.

At Co-gency, we guide our clients through MTD preparation, ensuring compatible software is in place and that financial records are maintained in accordance with HMRC’s digital standards.

General accountants may not fully understand the intricacies of the Construction Industry Scheme. CIS is more than just tax deductions—it involves compliance checks, payment structures, and constant updates to legislation.

By working with Co-gency’s CIS accountants in Salford and Swinton, you benefit from:

• Expert knowledge of CIS and construction-sector accounting
• Accurate and timely returns to avoid penalties
• Clear advice on expenses and allowable claims
• Proactive tax planning to improve your financial outcomes
• Support in dealing with HMRC investigations or queries

Based in Swinton and serving clients across Salford and Greater Manchester, we understand the needs of local construction professionals. Whether you’re a small subcontractor, growing contractor, or a limited company with a large team, we provide the right support to keep your projects running smoothly.

Explore our full range of construction accountancy services or get in touch directly via our contact page to discuss your needs.

CIS compliance is not optional – it is a legal obligation. But with the right support, it doesn’t have to be stressful. From registration through to reclaiming overpaid tax, Co-gency Chartered Accountants help construction professionals in Swinton and Salford navigate CIS with confidence. Contact us today to ensure your business is fully compliant, tax-efficient and ready for long-term success.

Visit Cogency Accountants to learn more.