CIS Returns That Keep Your Subcontractor Reporting on Track
Path Accountants helps construction contractors with subcontractor verification, CIS deduction records, payment statements, monthly CIS returns, nil returns and catch-up work where previous periods are incomplete.
- Monthly CIS return preparation
- Subcontractor verification support
- Payment & deduction records
- Nil returns and inactivity reviews
CIS tax months run from the 6th of one month to the 5th of the next. The return for that period is due to HMRC by the 19th.
CIS Returns Are a Monthly Contractor Obligation
Contractors must report payments made to subcontractors through the monthly CIS return. The return also includes declarations around the subcontractors reported.
From April 2026, active mainstream contractors are again legally required to deal with every monthly period: file a return showing payments, file a nil return where no subcontractors were paid, or use an inactivity request where appropriate.
A CIS Return Starts Before the Filing Date
The return is only the final reporting step. The records need to be correct before the return is submitted.
Register as a Contractor
Make sure the business is correctly set up for CIS where contractor obligations apply.
Verify New Subcontractors
HMRC confirms whether the subcontractor is registered and which deduction rate or payment status applies.
Record Gross Payments
Keep the full payment information and supporting details needed for the CIS calculation.
Calculate CIS Deductions
Apply the rate HMRC provides after excluding amounts that do not form part of the CIS deduction calculation.
Issue Payment Statements
Where deductions are made, provide the subcontractor with the required payment and deduction statement.
File the Monthly CIS Return
Submit the return for the tax month by the 19th of the following month.
File Nil Returns When Required
If no subcontractors were paid, deal with the period using the correct nil-return or inactivity route.
Keep Supporting Records
Retain payment, verification and deduction information supporting what was reported to HMRC.
Reconcile CIS With Bookkeeping
Keep CIS records aligned with the subcontractor payments recorded in the business accounts.
A Quiet Month Does Not Automatically Mean “Do Nothing”
This became more important from April 2026 because the nil-return obligation was reinstated for mainstream contractors.
File a Nil CIS Return
Where no subcontractors were paid in the relevant CIS month, a nil return can be filed to tell HMRC there were no payments to report.
Request a Period of Inactivity
If the business expects not to pay subcontractors for several months, an inactivity request can cover up to 6 months. Filing a normal return later will lift the inactivity period.
Missing the 19th Can Become Expensive Quickly
HMRC applies escalating late-filing penalties when monthly CIS returns are not submitted on time.
First fixed late-filing penalty.
A second fixed penalty can apply if the return remains outstanding.
HMRC can charge the higher of £300 or 5% of the CIS deductions shown on the return.
A further tax-geared penalty can apply, with higher penalties possible where information is deliberately withheld.
A CIS Return Should Match the Subcontractor Payments in Your Books
The cleanest CIS process is one where subcontractor records, invoices, materials information, deductions and actual bank payments all reconcile before the monthly return is submitted.
That is why CIS returns work best when they are connected to your construction bookkeeping rather than maintained in a separate spreadsheet.
HMRC confirms registration and the rate/status to use.
Keep supporting information needed for the deduction calculation.
The accounting records should reflect the actual contractor payment.
The subcontractor receives payment and deduction information where CIS has been withheld.
The return submitted to HMRC should agree with the records for the tax month.
Already Behind or Not Sure the Previous Returns Were Right?
Late CIS problems often start with incomplete subcontractor records rather than the online filing itself. We can first review the periods involved, returns already submitted and the underlying payment evidence.
Review My Outstanding CIS Returns →Identify which tax months are outstanding and what records are needed to complete them.
Review contractor records and what should be done before future payments are made.
Reconcile invoices, material amounts, deductions and bank payments before further filing.
Review the period and whether a nil return or inactivity treatment should have applied.
Check what was issued to subcontractors and what supporting CIS records are still available.
CIS Returns Sit Inside a Wider Construction Accounting Workflow
Construction Accountants
Broader CIS, VAT, payroll, bookkeeping and tax support.
View construction accounting →Accountants for Builders
Accounting for builders and firms paying subcontractors.
View builder accounting →Accountants for Subcontractors
CIS deductions, Self Assessment and company accounting for subcontractors.
View subcontractor accounting →Construction Bookkeeping
Keep subcontractor payments and CIS records aligned with the books.
View construction bookkeeping →Want CIS Taken Off Your Monthly Admin List?
Tell us how many subcontractors you pay, what bookkeeping system you use and whether any returns are already overdue. We can review the monthly workflow and confirm what Path Accountants can take on.
Questions Contractors Ask About CIS Returns
Get the CIS Return Filed From Records That Actually Reconcile
Tell us how many subcontractors you pay, whether the current return is due or overdue, and what records you currently have. We’ll explain the next steps and the scope of support available.