CIS
CIS
Simplified Compliance for Construction Teams
At Mars Payroll, our CIS Payroll service is tailor-made for self-employed professionals and subcontractors working within the UK construction sector. By managing all aspects of the Construction Industry Scheme on your behalf. Tax deductions, HMRC reporting, and invoicing, we enable you to focus on your work, not your admin.
Before each pay run, we verify your CIS registration status with HMRC. We deduct the correct CIS tax rate from your labour charges. Typically 20% if you’re registered, or 30% if you’re not registered.
Your gross invoice amount is reduced by this tax (excluding materials and VAT), and we remit it directly to HMRC as part of your monthly CIS return.
- Streamlined Compliance - We handle contractor verification, invoice processing, CIS300 filing, and all HMRC submissions. Ensuring you stay compliant and avoid penalties
- Lower Tax Rates - By registering you for CIS, we help you benefit from the standard 20% deduction rate, avoiding the higher 30% rate charged to unregistered subcontractors
- Administrative Simplicity - We issue subcontractor payslips, invoice agencies as required, and manage deadline based payments to keep your earnings predictable and on-time.
- Expert Support, Every Step - From initial CIS registration to ongoing tax compliance and monthly payroll duties, our team ensures the process is smooth and accurate.
. What is CIS and who must register?
CIS is a UK tax framework requiring contractors to deduct tax from payments to subcontractors working in construction. Contractors must register if they pay for construction work or spend over £3 million in a year. Subcontractors can register to secure a lower 20% deduction rate.
. How is the CIS deduction rate determined?
If you’re a registered subcontractor in the scheme, you’re entitled to a standard 20% deduction on labour costs. If you’re not registered, contractors must deduct a higher default rate of 30%.
. Is registering with CIS mandatory?
Subcontractors aren’t legally required to register. But if they don’t, they’ll face higher tax deductions (30%). Registering can also open the possibility of gross payment status where no deductions may apply.
. What types of work fall under the CIS scheme?
CIS covers most construction related activities such as site preparation, building, repairs, installations, alterations, demolitions and internal cleaning post construction. Administrative tasks, architecture, surveying, and material supply only are excluded.
. How does CIS Umbrella Payroll work?
CIS umbrella payroll means we process your income through our PAYE structure. We invoice your client, apply deductions, remit to HMRC, and issue payslips. You handle minimal admin, just timesheets and validation, while we manage payroll and filing compliance.
. How do contractors verify subcontractors under CIS?
Before payment, verifying subcontractors via HMRC’s CIS portal or helpline is mandatory. This ensures the correct deduction rate is applied, whether 20%, 30% or no deduction.
. What happens if I register late or fail to verify?
If subcontractors aren’t registered or contractors don’t verify, the higher 30% tax rate may apply. HMRC may issue penalties for late registration and late or inaccurate CIS returns.
. Can contractors register as both contractor and subcontractor?
Yes! Many businesses play both roles. If your business earns both subcontractor and contractor income, HMRC requires you to register for both roles and follow reporting rules applicable to each.
Warning: Undefined array key "aivons_feature_box_title" in /home/u834983402/domains/mars-cp.ltd/public_html/wp-content/plugins/aivons-addon/post-templates/single-service.php on line 35
Warning: Undefined array key "aivons_feature_box_content" in /home/u834983402/domains/mars-cp.ltd/public_html/wp-content/plugins/aivons-addon/post-templates/single-service.php on line 36
