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Trade Tax Specialists

14 articles

CIS Compliance

Practical guides on cis compliance for UK construction subcontractors and contractors.

  • CIS Compliance

    CIS April 2026 Rule Changes: GPS Revocation, Nil Returns and Director Liability Explained

    Finance Act 2026 reshaped the Construction Industry Scheme from 6 April 2026. HMRC can now revoke gross payment status immediately where a contractor knew or should have known about supply-chain fraud, the reapplication ban after a fraud-grounds removal jumps from 1 year to 5 years, new knowledge-based penalties fall on anyone who pays or makes a return knowing a connected party deliberately failed to comply (FA 2004 s.62A charges 20% of the payment, s.62B recovers 100% of the sum a false return treats as paid), and the CIS300 nil return is mandatory again. This guide explains each change, works the cash-flow and liability numbers in real pounds, and sets out the due-diligence checklist that keeps you on the right side of the new standard.

    14 min read

  • CIS Compliance

    CIS Deadline Calendar 2026/27: Monthly Returns, SA, MTD and GPS

    Missing a CIS deadline costs money. The penalty for a late monthly return starts at £100 and escalates quickly if left unresolved. This calendar sets out every CIS-related deadline for the 2026/27 tax year: the 12 monthly CIS300 filing dates, the nil return obligation reinstated from April 2026, the Self Assessment filing deadline, MTD quarterly update dates for higher earners, and the GPS review cycle. Every date is based on locked house-position figures from HMRC guidance.

    7 min read

  • CIS Compliance

    CIS for Contractors: Your Monthly Responsibilities Checklist

    Under CIS a contractor is the withholding agent, responsible for verifying subcontractors, calculating and deducting the right amount, issuing payment and deduction statements within 14 days, filing the CIS300 return by the 19th and paying HMRC by the 22nd every single month. This checklist walks through every step in order, with a worked example across three subcontractors and the full penalty picture for anything missed.

    7 min read

  • CIS Compliance

    CIS Gross Payment Status: How to Qualify, Apply and Keep It in 2026

    Gross payment status lets a construction subcontractor be paid in full with no CIS deduction taken at source, settling tax through Self Assessment or Corporation Tax instead. This guide explains the three qualifying tests, the turnover thresholds by entity type, the application and annual review, the tougher April 2026 anti-fraud regime, and the cash-flow cost of losing it.

    11 min read

  • CIS Compliance

    CIS Monthly Returns: Deadlines, Nil Returns and Penalties (2026)

    Every contractor registered for the Construction Industry Scheme must file a CIS300 monthly return with HMRC showing every payment made to subcontractors in the tax month. From April 2026 the rules tightened in two key ways, including a reinstated nil-return obligation and a new public sector exemption. This guide covers who must file, the exact deadlines, what verification you must complete before paying, what changes in 2026, and the full penalty ladder for late returns.

    8 min read

  • CIS Compliance

    CIS Nil Return: The April 2026 Rule Every Contractor Must Know

    From 6 April 2026, contractors must file a CIS300 nil return for every tax month in which they make no payments to subcontractors, or pre-notify HMRC that they are inactive for up to six months. The obligation was removed in 2015 and quietly reinstated eleven years later. Many contractors have no idea it exists. Miss it and the penalty clock starts the next day.

    6 min read

  • CIS Compliance

    CIS Payment and Deduction Statements: What They Must Show and What to Do If You Are Missing Them

    A CIS payment and deduction statement is the primary evidence for your Self Assessment refund claim. This guide explains exactly what a statement must contain, the 14-day issuance rule (statements due by the 19th of the following month), why there is no statutory annual CIS statement, what to do when a contractor refuses to issue one, and how to compile your total CIS deducted across multiple contractors for your tax return.

    9 min read

  • CIS Compliance

    CIS Penalties and Appeals: The Complete Guide for 2026/27

    Late CIS300 returns trigger an automatic £100 penalty per missed return, and the Self Assessment penalty ladder piles on interest and surcharges the longer a liability goes unpaid. From April 2026, nil returns are mandatory again for contractors, reopening a penalty risk many had forgotten about. This guide sets out every tier of the penalty regime, what counts as a reasonable excuse, how to appeal within the 30-day window, and what HMRC's interest rate means for late payments.

    9 min read

  • CIS Compliance

    CIS Record Keeping: What to Keep, How Long to Keep It, and What HMRC Looks For

    Poor record keeping is one of the most common reasons CIS refunds are delayed, compliance checks go badly, and penalties arrive unexpectedly. This guide sets out which records contractors and subcontractors must keep, minimum retention periods, the MTD ITSA digital record rules live from April 2026, and what HMRC typically asks for in a CIS enquiry.

    6 min read

  • CIS Compliance

    Retention Payments and CIS: Tax Treatment, Timing and Cash Flow

    Retentions are a routine part of construction contracts, but their interaction with the Construction Industry Scheme catches subcontractors out. The CIS deduction does not apply when you invoice; it applies when the retention is actually paid. Income is recognised for Self Assessment when the money is received. This guide covers the mechanics, record-keeping, cash flow planning for outstanding retentions, and what contractors must do when releasing a retention payment.

    8 min read

  • CIS Compliance

    How to Verify Subcontractors Under CIS and Why It Matters

    Before paying a subcontractor under the Construction Industry Scheme, a contractor must verify that subcontractor's status with HMRC. Verification tells the contractor which deduction rate to apply: 0% for gross payment status, 20% for a registered subcontractor, or 30% for an unregistered one. From 6 April 2026, verification has taken on a second, more urgent role as the foundation of the due diligence duty that protects contractors against GPS revocation and the new knowledge-based penalties under Finance Act 2026.

    12 min read

  • CIS Compliance

    CIS Supply Chain Compliance and Due Diligence: What the April 2026 Rules Require

    Finance Act 2026 shifted the CIS gross payment status regime from a compliance-only test to a conduct-based one. A contractor who fails to carry out reasonable due diligence on their supply chain can now lose GPS immediately, face a 5-year reapplication ban, and expose individual directors to personal penalties. This guide explains the new standard, the three core due-diligence steps, how to evidence them, and what the red flags look like.

    7 min read
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