Experienced CIS Payroll Specialists
FAQ's
Frequently Asked Questions from Specialists in CIS Payroll for Contractors and Sub Contractors.
- HMRC CIS compliant
- GBP & EUR payments
Why Sovereign Plus
A trusted partner,
not just a payroll bureau
We act as a contractor within your supply chain, not a recruitment agency. Keeping things simple, compliant and personal in an industry HMRC is scrutinising more than ever.
More time for your business
We absorb the sub-contractor admins so your team can focus on running projects .
No HMRC worry
Status, deductions, and employment law risk are fully managed and fully aligned with CIS.
Always compliant
Stay aligned with current tax and employment law with a responsive personal service behind you.
Frequently Asked Questions
What is CIS and who needs to register for it?
The Construction Industry Scheme (CIS) is an HMRC scheme that manages payments between contractors and self-employed subcontractors in the construction industry. Contractors must register for CIS, and subcontractors should register to avoid paying the higher 30% deduction rate.
How do I verify a subcontractor under CIS?
Before paying a new subcontractor, you must verify them with HMRC using their UTR and National Insurance number. HMRC will confirm whether they should be paid gross, or with 20% or 30% CIS deductions.
What happens if I don't submit my CIS return on time?
Late CIS returns result in automatic HMRC penalties, even if you’re only one day late. Nil returns are also mandatory, so it’s important to submit your monthly return on time, even if you haven’t made any subcontractor payments.
Do I need to carry out Right to Work checks on subcontractors?
Yes. Right to Work checks apply to self-employed subcontractors as well as employees. These checks must be completed before work starts to ensure you’re meeting your legal obligations.
What records should I keep for CIS compliance?
You should keep records of subcontractor payments, CIS deductions, materials, and Payment & Deduction Statements for at least three years after the end of the relevant tax year.
Can I outsource CIS payroll and subcontractor payments?
Yes. Many construction businesses choose to outsource their CIS payroll and compliance to save time, reduce administration and minimise compliance risks.
What are the penalties for getting CIS wrong?
Getting CIS wrong can lead to HMRC penalties, interest charges and backdated tax liabilities. Making sure your subcontractors are correctly classified and your returns are accurate is key to staying compliant.
How can I reduce the administration involved in managing subcontractors?
Using a commercial contractor like Sovereign Plus takes the burden off your business. We manage everything from onboarding and compliance to payments and reporting, so you can focus on running your projects.
What is the difference between a subcontractor and an employee?
A subcontractor runs their own business and works independently, while an employee works under your direction and is paid through PAYE. HMRC looks at the actual working relationship, not just what’s written in a contract.
Why should I use Sovereign Plus to manage my CIS payroll?
To remain compliant, you need to verify subcontractors, confirm their employment status, apply the correct CIS deductions and submit accurate monthly returns. Sovereign Plus can manage the entire process on your behalf, giving you complete peace of mind.
Get Started
Ready to remove the compliance burden?
Book a no obligation call and see how Sovereign Plus can take the risk out of your subcontractor supply chain.