CIS accounting

Specialist accountants for steel erectors.

Steel erection is predominantly a labour-only trade. Most steel erector subcontractors supply their own labour and specialist working-at-height equipment but not the structural steelwork itself, which is designed and supplied by the main contractor or steel fabricator. That labour-only position means the full payment is within the CIS deduction base, making registration, expenses and gross payment status critical to managing the tax position correctly.

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20%

CIS deducted on labour payments

~£2,000

Average first-year CIS refund

£30,000

GPS qualification threshold (net CIS turnover)

The specific challenges

What makes steel erectors accounting different.

Labour-only position: the full payment is the deduction base

Because steel erectors typically do not supply the steel (that comes from the fabricator), there is no materials element to exclude from the CIS deduction base. The 20% applies to the full labour payment. This makes registration essential (the gap between the 20% registered rate and the 30% unregistered rate is the difference between a manageable cash-flow position and a serious overpayment problem) and makes expenses claims more important than in materials-heavy trades.

Working-at-height kit: allowable capital expenditure

Steel erectors invest significantly in working-at-height equipment: harnesses, lanyards, fall-arrest systems, safety helmets, high-visibility clothing and specialist tools. These are allowable either as revenue expenses (consumables, PPE) or as capital allowances (reusable equipment). The Annual Investment Allowance provides 100% first-year deduction on qualifying plant and machinery up to £1 million. Many steel erectors substantially underclaim here.

Unregistered rate hits harder on a labour-only base

The 30%-vs-20% gap on a pure labour invoice costs more in cash terms than on a mixed labour-and-materials invoice of the same value. A steel erector earning £50,000 a year in labour income who is unregistered loses £5,000 a year to unnecessary deductions compared with a registered counterpart, before any allowable expenses are counted.

Gross payment status: the right target for high earners

Steel erection contracts are often high-value and concentrated on large commercial or industrial builds. Erectors with net CIS turnover over £30,000 a year (sole trader) may qualify for GPS and receive labour payments in full with no deduction. The GPS compliance test requires a clean tax record for the past 12 months. We assess eligibility and manage the application.

How we help

What we do for steel erectors.

CIS registration and immediate rate reduction

We register unregistered steel erectors for CIS, immediately reducing the deduction rate from 30% to 20% for all future payments. For those already registered, we check that main contractors are verifying correctly.

CIS refund and expenses claim

We calculate your full refund entitlement including all allowable expenses: working-at-height equipment, harnesses, PPE, mileage at 55p per mile from April 2026, van costs and any professional training. We submit your Self Assessment return and follow up with HMRC on timing.

GPS application for established erectors

Once your net CIS turnover exceeds £30,000, we assess the three GPS qualifying tests, manage the application and maintain the compliance record that keeps gross payment status in place.

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Questions from steel erectors

I supply only labour on steel erection contracts. Is my full payment subject to CIS deduction?

Yes. Where you supply labour only and not the steelwork, the entire payment is the CIS deduction base because there are no materials costs to exclude. That is why CIS registration (to avoid the 30% unregistered rate) and a thorough expenses claim are especially important for labour-only steel erectors.

Can I claim my safety harnesses and fall-arrest equipment against tax?

Yes. Working-at-height equipment you use in your trade is either an allowable expense (if it is consumable PPE) or qualifying plant and machinery eligible for capital allowances (if it is a durable item). The Annual Investment Allowance gives 100% first-year deduction on qualifying items up to £1 million per year.

Do steel erectors qualify for gross payment status?

Yes, provided you pass the three GPS tests: business test (UK construction work through a bank account), turnover test (net CIS turnover of at least £30,000 for a sole trader in the last 12 months) and compliance test (all tax obligations met on time for the past 12 months). Steel erection work is clearly within CIS so the business test is straightforward. Many experienced steel erectors meet all three.

Get started

Talk to a specialist steel erectors 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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