CIS Monthly Returns

Cutter & Co can help prepare and produce your monthly contractor returns. Along with submitting these returns online, we can also produce your subcontractor certificates for you to distribute.

Each time a contractor engages a new subcontractor, they must verify them with HMRC. Our team can assist you in that process or can complete it for you.

Our team also works alongside many subcontractors and assists them registering for CIS and making sure that the tax deducted from them is at the correct level.

The certificates given each month to subcontractors need to be retained by them and used to complete their self-assessment tax return which needs to be completed each tax year. The certificates are proof that tax has been deducted from the gross payments and therefore can be offset against their annual tax bill.

Subcontractors commonly suffer more tax deductions than their actual liability. As such we can assist you in reclaiming this tax back from HMRC.

Did you know?

CIS tax is calculated on payments made between the 6th of one month to the 5th of the next.

The rate of CIS deducted can be 0% (gross), 20% (standard) or 30% (higher).

Before any payments are made to a new subcontractor, or one that has not worked for you for more than 2 years, the individual must be verified with HMRC. The verification process will let you know how much tax to deduct from the subcontractor.

Both sole traders and limited companies can be subcontractors.

All payments made to subcontractors, and any tax deducted from them, must be recorded on a monthly CIS return and submitted to HMRC by 19th of each month. A return must be completed even if no tax has been deducted from the subcontractors as they have gross status.

Any tax deducted from the subcontractors must be added to any PAYE and NIC liabilities for that tax month and paid to HMRC by 19th of each month if paying be cheque. If paying electronically, this is extended to 22nd of each month.