December 8, 2023

A Key Guideline to CIS Tax Return Submission

A CIS tax return, or Construction Industry Scheme tax return, says that all the contractors and subcontractors working in the construction industry are bound to complete and submit their taxes to the relevant authorities.

It was designed to regulate the tax flaws at the contractor and subcontractor level. Generally, contractors a specific portion of subcontractor’s salary and remit to the HMRC on behalf of the subcontractor. This is an advance payment toward the subcontractor’s tax liability.

The CIS tax return summarises these deductions and payments made throughout the tax year. Subcontractors can then claim credit for these deductions against their overall tax liability. The CIS tax return process helps streamline tax compliance within the construction sector and ensures proper revenue collection for the government.

What Does It Include?

A CIS tax return might seem a complicated matter that involves various types of information regarding tax payments in that specific year. For your convenience, here are some of the key elements you can go through to have an idea:

Contractor Information:

Contractor information comprise the essential details regarding the contractor, which can include his name, contact information and Unique Taxpayer Reference (UTR).

Subcontractor Information:

Similarly, details about subcontractors who have provided services are included, including their UTR and contact details.

Payments Made:

This return outlines every payment made to the subcontractor in that tax year. These payments can be gross payment amounts and the amount of tax deducted.

Materials Costs:

If relevant, the cost of materials provided by subcontractors may also be included in the return.

Verification Status:

It is paramount for contractors to verify the status of subcontractors from HMRC prior to making any payments, and the verification status of each subcontractor is typically indicated in the return.

Tax Deductions:

The return details the total tax deducted from payments to subcontractors under the CIS scheme.

Other Deductions and Adjustments:

Any other relevant deductions or adjustments, , may also be included. For example, allowable expenses or deductions for subcontractors who are registered for gross payment status.


The CIS tax return is typically accompanied by a declaration that the information provided is accurate and complete to the contractor’s knowledge.

It’s important to note that the specific requirements and elements of a CIS tax return can vary based on changes in tax regulations and the individual circumstances of the contractor and subcontractors. Contractors are responsible for ensuring that all the necessary information is accurately reported on the CIS tax return and submitted to HMRC within the specified deadlines.

Advantages of CIS Tax Return

Both contractors and subcontractors can benefit from the Construction Industry Scheme (CIS) in numerous ways:

Streamlined Tax Deductions:

The CIS facilitates the deduction of tax at source, ensuring that subcontractors’ tax obligations are met without needing separate tax calculations and payments.

Reduced Administrative Burden:

Contractors deduct and remit taxes on behalf of subcontractors, reducing the administrative burden for subcontractors when managing their tax payments.

Predictable Cash Flow:

Subcontractors benefit from predictable tax deductions, helping them manage their cash flow effectively and plan for their tax liabilities.

Simplified Reporting:

The CIS tax return consolidates payment and deduction information for subcontractors, simplifying the reporting process and reducing the likelihood of errors.

Accurate Compliance:

Contractors are responsible for an accurate and timely tax submission to the relevant authorities, and this system paves the way for accurate tax compliance, facilitating both the contractors and the tax authorities.


The CIS scheme provides transparency between contractors, subcontractors, and HMRC by documenting payment details and tax deductions, reducing the potential for disputes.

Improved Record Keeping:

Both contractors and subcontractors must maintain detailed records of payments and deductions, leading to better financial record keeping and organisation.

Industry Regulation:

The CIS scheme assists in keeping a smooth track record of the construction industry tax, promotes fair competition and encourages compliance for the tax-paying bodies.


CIS tax return scheme paves a smooth, favourable and legal complaint way for contractors and subcontractors to pay their taxes. However, filing the taxes and calculating them rightly is another thing. Usually, you being a contractor, may not be an expert in calculating taxes. That’s where expert self assessment tax return accountants can help you.

Having years of experience in tax calculations and utlising effective tools like CIS tax return calculator online, Jungle Tax can calculate your taxes accurately and make precise reports for you to submit. Hire them and file accurate taxes timey to avoid any penalty.

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