Accountants for Subcontractors Who Want Their CIS Deductions Properly Accounted For
Path Accountants helps construction subcontractors organise CIS deduction records, bookkeeping, Self Assessment or limited company accounts, VAT and tax — so you can see how deductions made by contractors feed into your overall tax position.
- CIS deduction reconciliation
- Self Assessment for sole traders
- Limited company accounts & tax
- Bookkeeping, VAT & record support
Why Are Contractors Deducting 20%, 30% or Nothing?
Under CIS, the amount deducted depends on your registration and payment status. The deduction is not automatically your final tax bill — it is an advance payment that must be dealt with correctly within your tax or company reporting.
Registered Subcontractor
This is the standard deduction rate HMRC normally applies to a subcontractor who is registered for CIS and paid under deduction.
Unregistered or Not Verified
Contractors may need to deduct at the higher rate where a subcontractor is not registered, cannot be verified or gives mismatched business details.
Gross Payment Status
Approved gross payment status can allow a subcontractor to receive eligible payments without CIS deductions and settle tax through the normal tax process.
CIS Deductions Are Not Claimed the Same Way by Everyone
One of the most important questions is whether you are a sole trader/partner or operate through a limited company. HMRC uses different routes for dealing with deductions.
CIS Through Self Assessment
Sole traders and partners still report the full invoiced income in the usual way. CIS deductions made by contractors are recorded separately so HMRC can take them into account when calculating the final tax and National Insurance position.
- Income and expense bookkeeping
- CIS deduction statement reconciliation
- Self Assessment preparation
- Review of tax due or repayment position
CIS Through the Company’s PAYE Process
For limited companies paid under deduction, CIS credits are generally dealt with through the company’s payroll/PAYE reporting rather than being claimed directly through the Corporation Tax return.
- CIS deduction records
- PAYE / EPS reporting support where in scope
- Company bookkeeping
- Year-end accounts & Corporation Tax
CIS Should Not Leave You Guessing What You Actually Owe
A subcontractor can have tax taken from payments throughout the year and still need to keep complete business records, account for all income and expenses, and file the correct return.
The starting point is making sure contractor statements, invoices, bank receipts and bookkeeping all agree.
Review My CIS Records →CIS deductions are advance payments, not a replacement for the normal tax and accounting obligations of your business.
Monthly contractor statements are important evidence. We can help identify what records are available and what still needs to be obtained.
A higher CIS rate can apply if HMRC cannot verify you or your registration/business details do not match. The underlying issue should be checked.
Company subcontractor credits are generally handled through PAYE reporting rather than simply entered on the Corporation Tax return.
The answer depends on the full tax position, not just the amount deducted under CIS. We can reconcile the records before any conclusion is reached.
Support Built Around the Way CIS Subcontractors Get Paid
Choose the work you need or combine services into an ongoing accounting package. The exact scope depends on your structure, VAT position, bookkeeping and filing requirements.
CIS Deduction Reconciliation
Bring contractor statements, invoices and receipts together so the CIS amounts suffered can be checked against your records.
Explore construction accounting →Self Assessment for CIS Subcontractors
Prepare the tax return using complete business income, allowable costs and CIS deduction records for the relevant tax year.
Discuss Self Assessment →Limited Company CIS Accounting
Support with company bookkeeping, CIS records, accounts, Corporation Tax and the PAYE reporting needed for CIS credit where included.
View accounting services →Bookkeeping for Subcontractors
Keep invoices, bank transactions, tools, materials, travel-related business costs and contractor payments organised through the year.
Explore bookkeeping →VAT Support
Help with VAT records, returns and construction transactions where domestic reverse-charge treatment may need to be reviewed.
Explore VAT support →CIS Repayment / Offset Review
Reconcile the deductions first, then review how HMRC should take those amounts into account for your particular business structure.
Business Expense Records
Organise qualifying business-cost records so your accounts are based on actual evidence rather than estimates made at year end.
Gross Payment Status Support
If gross payment status is relevant to your business, we can help you understand the accounting information needed before you consider an application.
Switching Accountants
If your current accountant is not reconciling CIS clearly, we can review the required scope and explain the professional-clearance process.
The Contractor’s Deduction Statement Is Only One Piece of the Tax Picture
The amount deposited into your bank account is usually not the full value of the work you invoiced. Your accounting records still need to show the correct gross income, relevant costs and the CIS amount withheld.
That is why simply adding up bank receipts can produce the wrong picture.
Your records should retain the full invoice and supporting details.
The contractor uses the CIS status HMRC provides and pays you the net amount.
The statement helps evidence what was paid and what was withheld under CIS.
Sole traders and limited companies do not use exactly the same claiming process.
Accountants for Construction Subcontractors Across Different Trades
The same CIS principles can affect many trades, while the bookkeeping, VAT and expense profile can vary from one subcontractor to another.
Need Something More Specific?
This page sits inside our wider construction accounting cluster. Use the route that best matches your current accounting problem.
Construction Accountants
Broader support for contractors, subcontractors and construction businesses.
View construction support →Accountants for Builders
Accounting for builders and building firms managing jobs, staff and subcontractors.
View builder accounting →Bookkeeping
Keep income, business costs and contractor payments organised through the year.
View bookkeeping →VAT Support
Support for VAT records and construction transactions requiring closer treatment.
View VAT support →Your Accountant Should Be Able to Explain Where Your CIS Deductions Went
If you receive a tax calculation or company accounts without understanding how the CIS figures were reconciled, tell us what you have received. We can review the required scope and explain the handover process before you decide to switch.
Start With the Records You Already Have
Tell Us How You Trade
Sole trader, partnership or limited company, plus your CIS registration/payment status and VAT position.
Gather CIS Evidence
Contractor statements, invoices, bank receipts and existing bookkeeping are reviewed for the agreed period.
Reconcile the Position
We identify missing records, discrepancies and which tax/accounting route applies to the deductions.
Complete the Agreed Work
Once appointed, we proceed with the agreed bookkeeping, return, accounts or ongoing service.
How Much Does an Accountant for a CIS Subcontractor Cost?
A sole trader with clean records and a small number of contractor statements can have a very different workload from a limited company with VAT, payroll, bookkeeping and CIS credits to reconcile through PAYE.
We review the records and responsibilities first, then confirm the proposed scope and fee before ongoing work begins.
Questions Subcontractors Commonly Ask
Know What Was Deducted, What It Means and What Happens Next
Bring us your CIS statements, invoices and current accounting position. We’ll explain what needs to be reconciled and which accounting or tax route applies to your business.