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CIS payroll for construction payments

Subcontractors verified, deduction rates applied correctly, materials handled separately and monthly CIS returns kept to the 19th.

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Advisory

CIS gets messy when site changes outrun the paperwork.Verify a subcontractor incorrectly, apply the wrong deduction rate, or miss a monthly return, and the corrections fall on you. The rules around verification, rates and qualifying materials trip up plenty of contractors. RPS Contracts runs the Construction Industry Scheme with you, so deductions are applied to the right element and monthly returns are kept on track.

Understanding the Scheme

What CIS payroll means

CIS is the Construction Industry Scheme. Under it, a contractor deducts money from a subcontractor's payments and passes it to HMRC as an advance payment towards that subcontractor's tax and National Insurance. We verify subcontractors, apply the correct rate, pay the net amount, and file the monthly return.

The rate is not a guess. HMRC verification tells you whether to pay gross, deduct at the standard registered rate or deduct at the higher unregistered rate. CIS deductions apply to the labour element, not qualifying materials directly paid for by the subcontractor, which is why the invoice split, evidence and records matter. CIS is also not an employment-status fix: it applies where the subcontractor is self-employed for the work in question and the payment falls within the scheme.

Here is what you get with RPS Contracts CIS payroll:

  • Correct rate applied - 20% for registered subcontractors, 30% for unregistered and 0% where gross payment status applies, based on HMRC verification.
  • Materials excluded properly - qualifying materials and direct costs are correctly kept out of the deduction.
  • Monthly returns and verification - we handle subcontractor verification and the monthly CIS return for you.
  • Clear statements - a clean deduction statement for every subcontractor, every month.

CIS rates and rules are current at time of writing. We confirm against HMRC at the point of running your scheme.

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Construction workers in hard hats and hi-vis on a building site

What you get

Verification done

Every subcontractor verified with HMRC and set up on the correct deduction rate.

Monthly returns

The monthly CIS return prepared and filed to HMRC, reported by the 19th, within 14 days of the tax month end.

Clear statements

A clean deduction statement for every subcontractor, every month.

Who It Is For

Built for construction and labour supply

Construction contractors, developers, and recruitment agencies supplying construction labour where CIS may apply.

Construction contractors

Businesses paying subcontractors for construction operations and needing verification, deductions, statements and returns handled properly.

Developers

Property and construction groups with multiple trades, sites and subcontractor payment patterns.

Recruitment agencies

Agencies supplying construction labour where CIS may apply and agency-worker or status issues still need separate review.

Site office paperwork and a tablet showing CIS payroll figures on a construction project
Built for the trades

Payroll that keeps up with site work

CIS gets messy when site changes outrun the paperwork. A subcontractor changes status, materials are not evidenced, a labour-only payment is treated like a mixed invoice, or the return misses a tax month.

RPS keeps the process tight: verify, classify, calculate, statement, return, record. From groundworks to fit-out, brickwork to roofing, we run CIS across the full mix of trades on your books, so the people on your sites are paid the correct net amount and the figures behind every payment hold up.

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What You Get

CIS handled with the details visible

Everything the Construction Industry Scheme requires, run with you.

Correct rate applied

20% for registered subcontractors, 30% for unregistered and 0% where gross payment status applies, set by HMRC verification.

Materials excluded properly

Qualifying materials and direct costs are correctly kept out of the deduction, so no one is over-deducted.

Monthly returns and verification

We support subcontractor verification and complete monthly CIS returns, reported by the 19th, so payments, deductions and nil periods are not missed.

Clear statements

A clean deduction statement for every subcontractor, every month, so everyone has a clear record.

Status awareness

We keep CIS separate from employment-status advice and flag where the arrangement needs separate review.

One point of contact

A named contact who knows your sites and your subcontractors, not a ticket queue.

FAQ

Frequently Asked Questions

Answers to the most common questions about CIS payroll.

CIS is the Construction Industry Scheme. Under it, a contractor deducts money from a subcontractor's payments and passes it to HMRC as an advance payment towards that subcontractor's tax and National Insurance. We support verification, apply the correct rate, pay the net amount, and support the monthly return.

The current safe rates are 20% for registered subcontractors, 30% for unregistered subcontractors and 0% where HMRC confirms gross payment status. HMRC verification determines the treatment to apply. Rates are current at time of writing and confirmed against HMRC at the point of running your scheme.

No. CIS deductions are calculated on the amount left after taking away qualifying materials and certain other allowable direct costs. The materials element needs evidence and should not be overstated, so subcontractors are not over-deducted.

The return for a tax month must reach HMRC within 14 days of the end of that tax month. In practice, payments made between the 6th of one month and the 5th of the next need to be reported by the 19th. We support the monthly return and produce a clean deduction statement for every subcontractor each month.

Get Started

Get CIS out of the spreadsheet

Send us your subcontractor list, payment cycle and current return process. We will show where verification, deductions and statements can be tightened.

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