Advice for contractors
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Advice for subcontractors
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The Construction Industry Scheme sits within one of the most complex areas of UK tax. Between CIS deductions, monthly contractor returns, subcontractor verification, gross payment status, and the ever-present risk of misclassifying workers, there's a lot that can go wrong - and HMRC takes compliance in the construction sector seriously.
At Facts & Figures, we work with limited companies, sole traders, and professional practices involved in the construction industry across Edinburgh, Glasgow, and Scotland. We understand how the industry works, and we build close working relationships with our construction clients so that we can support the people running these businesses to achieve their goals - not just keep their paperwork in order.
Who we work with
Our construction sector clients include:
Contractors - businesses that engage subcontractors and have monthly CIS return obligations with HMRC
Subcontractors - sole traders and limited companies working under the scheme, whether registered at the standard 20% deduction rate or holding gross payment status
Mixed businesses - companies that act as both contractor and subcontractor depending on the contract
Property developers and landlords - where construction spend triggers CIS obligations that are often overlooked
What we handle
Monthly CIS returns - prepared and submitted to HMRC on time, every month, including nil returns in quieter periods
Subcontractor verification - verifying subcontractors with HMRC before the first payment to make sure the correct deduction rate is applied
Gross payment status applications - helping eligible subcontractors apply for GPS so they receive payments in full without deductions, improving cashflow significantly
CIS deduction reconciliation - making sure any deductions suffered as a subcontractor are correctly offset against your tax bill through your self assessment or corporation tax return
Payroll and PAYE - managing the distinction between employed and self-employed workers correctly, which is an area HMRC scrutinises closely in the construction sector
VAT for construction - advising on the correct VAT treatment for construction services, including the domestic reverse charge which applies to most construction services between VAT-registered businesses
HMRC enquiries and investigations - representing you if HMRC opens an enquiry into your CIS affairs, handling all correspondence and negotiations on your behalf
Gross payment status - are you missing out?
If you're a subcontractor currently having 20% deducted from your payments, gross payment status could make a meaningful difference to your cashflow. Instead of waiting until your tax return to reclaim deductions, you receive your full payment upfront and settle your tax liability directly with HMRC at year end.
To qualify, you need a satisfactory compliance record, a business bank account, and to meet HMRC's turnover test. We assess eligibility for our subcontractor clients regularly and manage the application process on their behalf.
The domestic reverse charge
Since March 2021, most construction services supplied between VAT-registered businesses in the UK are subject to the domestic reverse charge - meaning the customer accounts for the VAT rather than the supplier. This has caught out a significant number of construction businesses and the rules around what is and isn't in scope are not always straightforward. If you're not completely confident your VAT is being handled correctly for construction services, it's worth getting that reviewed.
Working as part of your team
Construction businesses are often fast-moving -contracts start and finish, subcontractor rosters change, and the financial picture can shift quickly. We make a point of understanding how our construction clients operate and being genuinely available when something comes up, not just at year end. That means you have someone to call when you're not sure how to handle a payment, a new subcontractor, or a letter from HMRC.
All of our CIS services are offered on transparent, fixed-fee pricing, agreed in advance.
Thinking of switching accountant?
If your accounts are currently prepared by someone you rarely hear from, or you are not confident everything is being handled as thoroughly as it should be, switching is simpler than most people expect. Find out how moving to Facts & Figures works.
Advice for contractors
Read MoreAdvice for subcontractors
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