complianceInstitute of Financial Accountants (IFA)

CIS Tax Returns for Glasgow Contractors & Subcontractors

The Construction Industry Scheme (CIS) makes contractors deduct tax from subcontractors' pay and send it to HMRC. If you work in construction in Glasgow — as a contractor, a subcontractor, or both — QA FinTax handles your CIS registration, monthly returns and refunds so you stay compliant and get back the tax you overpay.

Glasgow has one of Scotland's busiest construction sectors, and CIS catches almost everyone in it — main contractors, subcontractors, property developers, and businesses that simply spend heavily on construction work. The rules are unforgiving: a monthly return one day late is an automatic £100. We take the deadline off your hands, and for subcontractors we reclaim the tax that CIS routinely over-deducts.

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What Our CIS Tax Returns Service Includes

CIS registration as contractor and/or subcontractor
Monthly CIS returns filed with HMRC by the deadline
Subcontractor verification before you pay them
Gross payment status applications
CIS refunds for overpaid subcontractors, calculated and claimed
CIS integrated with payroll and self assessment

Who Does CIS Apply To?

CIS covers most construction work in the UK — building, alterations, repairs, demolition, and site preparation. If you pay subcontractors for that work, or you are paid for it, CIS almost certainly applies to you.

Contractors who pay subcontractors for construction work
Subcontractors doing construction, refurbishment, demolition or groundwork
Property developers and property investors spending heavily on construction
Labour agencies supplying construction workers
"Deemed contractors" — non-construction businesses spending over £3m a year on construction in a rolling 12-month period

What Are the CIS Deduction Rates?

Before a contractor pays a subcontractor, they must verify them with HMRC to find out which rate to deduct. Getting this wrong makes the contractor liable for the shortfall.

CIS deduction rates
Subcontractor status	Deduction from labour
Registered with HMRC under CIS	20%
Not registered with HMRC	30%
Holds gross payment status	0% — paid in full, tax settled later

CIS is deducted from the labour element only, not from materials, VAT or plant hire. Gross payment status lets established subcontractors be paid in full and settle tax through their own return — worth applying for once you qualify.

What Are the CIS Deadlines and Penalties?

Contractors file a CIS return every month, even in a month with no payments (a nil return). The penalties escalate fast and are automatic.

CIS monthly return deadlines and late-filing penalties
How late the monthly return is	Penalty
Filing deadline	19th of the month (covering the tax month to the 5th)
1 day late	£100
2 months late	£200
6 months late	£300 or 5% of the CIS deductions, whichever is higher
12 months late	A further £300 or 5%, whichever is higher

You must also give every subcontractor a monthly statement showing what you deducted.

How Do Subcontractors Claim a CIS Refund?

CIS takes 20% off your labour with no account of your expenses or your personal allowance, so most subcontractors end the year having paid far too much tax. The overpayment is reclaimed through your self assessment return (or, for a limited company, through the payroll scheme). We calculate the refund and submit the claim — for many Glasgow subcontractors this is the single biggest reason to have an accountant.

CIS Tax Returns in Glasgow — Frequently Asked Questions

CIS is an HMRC scheme where contractors deduct tax from subcontractors' pay at source. It applies to most construction work — building, repairs, demolition, groundwork. If you pay or are paid for construction work in Glasgow, it almost certainly applies to you.

20% for a subcontractor registered with HMRC, 30% for one who is not, and 0% for a subcontractor with gross payment status. The deduction comes off the labour element only — not materials, VAT or plant hire.

You register with HMRC as a CIS subcontractor, which brings your deduction rate down from 30% to 20%. We handle the registration for you, along with your self assessment, so the CIS deducted from your pay is properly credited and any overpayment reclaimed.

Through your self assessment return if you are a sole trader, or your payroll scheme if you trade through a limited company. Because CIS ignores your expenses and personal allowance, most subcontractors are owed a refund at year end. We calculate it and claim it for you.

Gross payment status means contractors pay you in full with no CIS deducted, and you settle your tax through your own return. To qualify you must pass HMRC's turnover, business and compliance tests. It transforms your cash flow, and we can handle the application.

An automatic £100 the day after the 19th, rising to £200 at two months and £300 (or 5% of the deductions) at six and twelve months. Nil months still need a return. We file every month on time so these penalties never arise.

Official sources

Rates and thresholds are stated for the 2026/27 UK tax year and are for general guidance only. They are not a substitute for advice on your own circumstances.