CIS compliance handled. Subcontractor payments tracked. Returns filed on time.
Most contractors manage CIS with spreadsheets, manual calculations, and a nagging fear they've got the rates wrong. We built a better way — automated deduction tracking, real-time compliance monitoring, and AI-powered insights, all included in your monthly fee.
CIS compliance costs construction businesses more than they realise
The Construction Industry Scheme requires every contractor who pays subcontractors to deduct tax at source, file monthly returns, and verify each subcontractor with HMRC. Get it wrong and the penalties stack up fast — £100 for a late return, £200 more after two months, and the contractor becomes personally liable for any deductions they failed to make.
Yet most contractors still manage CIS with manual calculations. They look up rates in their heads, calculate deductions on the back of invoices, and file returns at the last minute because assembling the data takes hours. An unverified subcontractor at 30% instead of 20% costs the subcontractor hundreds in lost cash flow every month — and damages your working relationship.
The three deduction rates — 0% (gross payment), 20% (verified), and 30% (unverified) — exist because HMRC assigns them based on each subcontractor's registration and compliance history. Applying the wrong rate means either underpaying HMRC (your liability) or overpaying (your subcontractor's cash flow problem).
Three rates. Zero room for error.
CIS deductions apply to the labour element only — the cost of materials supplied by the subcontractor is excluded. The contractor deducts tax from the labour portion and pays it to HMRC on the subcontractor's behalf.
| Status | Rate | Who qualifies | What it means |
|---|---|---|---|
| Gross Payment | 0% | Excellent tax compliance, turnover above £30,000 | No deduction — full payment to subcontractor |
| Verified | 20% | Registered with HMRC and verified | Standard deduction on labour element |
| Unverified | 30% | Not registered or could not be verified | Higher rate — severe cash flow impact |
These rates are maintained in our system database and updated whenever HMRC announces changes. The system reads the current rate and calculates the deduction automatically — no manual lookups, no mental arithmetic.
CIS management built into your accounting — not bolted on
Most accountants handle CIS as a separate manual process. We built CIS management directly into the same platform that handles your bookkeeping, VAT, and cash flow forecasting. Everything connects. Nothing falls through the gaps.
Subcontractor register
Every subcontractor stored with UTR, verification status, deduction rate, and contact details. Colour-coded badges tell you who needs re-verifying at a glance.
No more spreadsheet listsAuto-calculated deductions
Enter the gross amount and materials — the system calculates labour, applies the correct HMRC rate, and shows you the exact deduction and net payment instantly.
Right rate, right calculation, every timeMonthly return tracking
Returns auto-generated from your deduction records. See totals per subcontractor, mark as submitted, track HMRC references. Deadline countdowns keep you ahead.
Never miss the 19th againCompliance monitoring
The system flags expired verifications, unverified subcontractors paying the higher rate, overdue returns, and approaching deadlines — before they become penalties.
Issues caught proactively, not reactivelyAI-powered CIS answers
Ask Chloe-AI any CIS question in plain English. "How much have we deducted this quarter?" "Which subs need re-verifying?" Instant answers from your live data.
Answers in seconds, not hoursConnected to cash flow
CIS obligations feed directly into your cash flow forecast. The tax calendar shows when deductions are due to HMRC, so outflows never catch you off guard.
CIS payments planned, not discoveredCIS questions answered in seconds — not days
Chloe-AI has 5 dedicated CIS tools that run against your live data. No waiting for your accountant to pull a report. No logging into separate software. Just ask.
Four steps to CIS clarity
Connect
We connect to your Xero or QuickBooks and set up CIS for your business. Subcontractors, UTRs, and verification statuses are recorded.
Record
When you pay a subcontractor, enter the gross amount and materials. The system calculates the deduction and net payment automatically.
Review
At month end, your return is auto-generated. Check the per-subcontractor breakdown, confirm totals, and mark as submitted.
Relax
Compliance monitoring watches for expired verifications, approaching deadlines, and overdue returns. You get flagged before anything becomes a penalty.
Serving construction contractors across the South West — CIS Accountant Bath · CIS Accountant South West
CIS compliance without the complexity
Bookkeeping, VAT, CIS management, cash flow forecasting, and 24/7 AI-powered financial insights — all from a single platform, a single accountant, and a single monthly fee.
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