CIS accounting

Specialist accountants for paving contractors.

Paving contractors face a scope question that many accountants miss. Commercial and site paving work (car parks, estate roads, pedestrian areas on development sites) is within CIS as civil engineering work or alteration to a structure. Domestic driveway work for a private homeowner is outside CIS, because CIS applies only where the payer is a contractor, not an end-user household. If you work across both types of contract, keeping clear records of which income is CIS and which is not is essential. Combined with the materials excluded from the deduction base (flags, block pavers, sub-base aggregate, edging kerbs) and mileage on a travel-heavy trade, most paving subcontractors are overpaying under CIS.

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20%

Deducted on labour on CIS contracts

Deducted on materials (aggregate, pavers, edgings)

~£2,000

Average first-year CIS refund (illustrative)

The specific challenges

What makes paving contractors accounting different.

Domestic driveways versus commercial and site paving: the split that matters

CIS applies where a contractor pays a subcontractor for construction work. A paving contractor working directly for a private homeowner on a domestic driveway is not in a CIS contract: the homeowner is the end user, not a contractor. The same paving contractor working as a subcontractor on a housing development, car park or commercial site is squarely within CIS. If you work across both, your annual income needs to be split correctly between CIS-liable and non-CIS income. Mixing the two on a single Self Assessment return without distinguishing them creates compliance risk.

Materials excluded from the deduction base

Block pavers, natural stone flags, tarmac, sub-base aggregate (MOT Type 1), sharp sand, edging kerbs and other materials you supply for CIS contracts are excluded from the CIS deduction base. Only the labour element of your invoice is subject to the 20% deduction. Many main contractors either estimate the split or apply the deduction to the full invoice. We review your deduction statements and identify where overpayment has occurred.

Mileage and site travel

Paving contractors typically travel significant distances between sites, particularly on commercial contracts. From 6 April 2026, the AMAP rate for cars and vans is 55p per mile for the first 10,000 business miles. Keeping an accurate mileage log throughout the year is the most straightforward way to capture the full claim. Many paving contractors claim nothing for travel and leave a meaningful deduction unclaimed.

Plant and equipment capital allowances

Plate compactors, block-laying equipment, laser levels, wacker plates and other tools and equipment are plant and machinery eligible for capital allowances. The Annual Investment Allowance provides a 100% first-year deduction on qualifying equipment up to £1 million. Larger plant, such as mini excavators used for preparatory groundwork before laying, may have been capitalised incorrectly or not claimed at all.

How we help

What we do for paving contractors.

CIS and non-CIS income split

We review your contracts and invoice records to correctly separate domestic (non-CIS) income from commercial and site (CIS) income. Getting this split right is the foundation of an accurate Self Assessment return and avoids both overpayment and compliance risk.

CIS refund and materials deduction review

We check your deduction statements, confirm the materials split on CIS contracts, account for all allowable expenses including mileage at 55p per mile, equipment costs and PPE, and submit your Self Assessment return to recover the full refund owed.

Gross payment status application

If your net CIS turnover (on commercial and site contracts, net of materials and VAT) exceeds £30,000, you may qualify for GPS. We handle the application and the compliance record.

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Questions from paving contractors

I lay driveways for homeowners. Do I need to be registered for CIS?

Not for driveway work done directly for private homeowners. CIS applies where a contractor pays a subcontractor for construction work, and a private homeowner is not a contractor. If all your work is domestic driveway paving for end-user householders, CIS does not apply to those contracts. If you also do commercial or development-site paving as a subcontractor for a main contractor, that element is within CIS and you should register to avoid the 30% unregistered rate on the CIS income.

I supply block pavers and sub-base aggregate on commercial contracts. Should my contractor deduct CIS from the full invoice?

No. Block pavers, aggregate, sand, edging kerbs and other materials you supply are excluded from the CIS deduction base. The 20% deduction should be applied only to the labour element of your invoice. If your contractor is applying the rate to the full invoice value, you are overpaying on every CIS job and the difference is recoverable through Self Assessment.

How do I keep records of which work is domestic and which is commercial?

The simplest approach is to record the type of client on each job: private homeowner (non-CIS) or contractor/developer (CIS). Keep your invoices, any CIS deduction statements from contractors, and a brief note of the site address and client type for each job. We can help you set up a simple record-keeping system at the start of the year that makes the year-end split straightforward.

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Talk to a specialist paving contractors accountant

Book a free call. We will talk through your CIS position, your deduction history and whether there is anything worth changing. No hard sell, no obligation.

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Specialist in CIS and construction accounting, not a generalist practice

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24-hour response guarantee

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Fixed fees, quoted before we start

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Other trades we work with

Plumbers Electricians Joiners and Carpenters Groundworkers Roofers

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