Nearly 80% of construction contractors in the UK face penalties each year due to CIS payment errors. This statistic underscores the importance of understanding CIS payments and adhering to HMRC regulations. At Futurelink Group, we have been helping contract workers and businesses navigate CIS compliance for over 25 years, ensuring full compliance, taking on all payroll administration including worker verification, whilst reducing any costly mistakes for non-compliance.
With over £12 billion processed annually in CIS payments, errors can lead to significant financial and reputational risks. This guide aims to help contractors understand CIS payments, manage their finances effectively, and stay compliant with HMRC requirements.
What Are CIS Payments?
CIS payments are part of the Construction Industry Scheme (CIS), a tax framework established in 2000, designed for contractors and subcontractors in the construction sector. Under this scheme:
- CIS Deductions: Subcontract workers have 20% tax (30% if unverified) deducted at source.
- Subcontractors complete an annual tax return or self-assessment to obtain a tax rebate and pay across any Class 4 NI.
- Record-Keeping: Accurate records of deductions are essential for tax submissions and compliance.
- The intermediary or contractor is responsible to check worker status under IR35 Onshore Intermediaries Legislation (2014), assuring workers are not supervised, directed and/or controlled. Otherwise, workers should be employed under PAYE.
At Futurelink Group, we simplify this process by offering tailored payroll solutions that ensure deductions are accurate and compliance is seamless.
Compliance and HMRC Regulations
Impact to the subcontractor worker and business for non-compliance.
If HMRC deems a worker to be supervised in some way, they may ask for the hirer to pay Employer’s National Insurance for the duration of their employment. They will likely insist that the worker is moved immediately to employed status.
This could prove costly to the business and naturally, reduce tax efficiency for the worker who enjoys self-employed status. Where the contract worker is only working for one firm at any one time, this may also be considered a breach of IR35 and Construction Industry Scheme. Failure to comply can be costly for all parties.
However, by partnering with the Futurelink Group, ensures unwavering compliance through advanced systems and expert support:
- We ensure all parties remain fully compliant and protect worker status.
- Automated CIS Verification: We verify subcontractor statuses using HMRC’s online service to apply correct deduction rates.
- Quarterly Audits: Regular checks aligned with IR35 criteria ensure compliance with evolving regulations.
- Secure Digital Record-Keeping: Our systems maintain detailed records for tax submissions, reducing the risk of penalties.
By simplifying these processes, we help contractors focus on their projects without worrying about administrative errors or fines.
Tailored Payroll Solutions for Contractors
Every contractor faces unique challenges, from fluctuating workforce sizes to complex tax calculations. Futurelink Group designs customised payroll systems that meet these needs while adhering to HMRC guidelines:
- Automated Tax Calculations: Ensure accurate deductions for varying team sizes and project scopes.
- Custom Reporting Tools: Simplify submissions such as CIS300 and CIS303 forms with real-time dashboards.
- 24/7 Access: Provide contractors with round-the-clock access to payroll updates and compliance reports.
Our solutions streamline payroll management, making it easier to handle temporary teams or large subcontractor networks while maintaining cash flow stability.
Streamlining Payroll and Employee Management
With over 28 years of experience, we’ve helped countless UK contractors focus on growth rather than paperwork by delivering efficient payroll solutions tailored to their needs.
Partnering with the Futurelink Group
Our mission is simple—to make CIS payments hassle-free while ensuring full compliance with HMRC regulations. Whether you’re a contractor managing a small team or overseeing large-scale projects, we offer tailored solutions that save time, reduce risks, and streamline operations.
- Contact us for a free consultation.
- Explore how our customised systems can simplify your CIS reporting.
- Let us handle the complexities so you can focus on growing your business.
Partnering with Futurelink Group means gaining access to industry-leading expertise and innovative tools that transform your payroll process into a competitive advantage.
Take the first step toward seamless payroll management today!
Craig Moss
Craig Moss is a seasoned professional in the employment and recruitment industries, based in Kings Langley, UK. With over 30 years of experience, including a successful tenure as a central London realtor handling properties up to £3 million, he now leads an exciting management role at Futurelink Group. Specialising in compliant payroll solutions for contract recruitment, Craig helps clients increase margins by up to 30% while navigating complex legislation. His people-focused approach, honed through decades in sales and people management, ensures both recruiters and workers benefit from tax-efficient, compliant solutions. Passionate about building strong relationships, Craig thrives on delivering results that drive business success.
