Construction Company Accounting
£1m+ contractors · South Yorkshire

CIS accounting for South Yorkshire contractors over £1m turnover

When you pay ten, twenty or fifty subcontractors a month, CIS becomes a process, not a form. One unverified subcontractor, one wrong deduction rate or one late return can lead to HMRC penalties and awkward conversations on site. Tax by Sterling runs CIS as part of your monthly finance cycle, so it's right first time and ties back to your payment runs and job costs.

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What we handle

  • Contractor registration and set-up in your accounting software
  • Verifying new subcontractors with HMRC before first payment, and keeping the records
  • Applying the right deduction (gross, 20% or 30%) and splitting labour from materials
  • Monthly CIS returns by the 19th, and payment and deduction statements for subcontractors
  • Reconciling CIS deductions to payroll, payment runs and your EPS/FPS where relevant
  • Reverse charge VAT checks on construction invoices, in and out
  • Gross payment status reviews, for your company and for your supply chain
  • Dealing with HMRC CIS queries and penalty notices

Why it matters at £1m+

At this size CIS errors are rarely about one invoice. They come from how subcontractor onboarding, site sign-off and payment runs connect. We fix the process, then run it with you each month, and feed the numbers into management accounts. That way directors see labour cost, retentions and cash by job.

How we work

  1. Review: a look at your current CIS, VAT and subcontractor records.

  2. Fix: tidy verification records, deduction rates and software settings.

  3. Run: monthly returns, statements and reconciliations, with a short report to directors.

FAQs

What happens if we file a CIS return late?

HMRC charges penalties for late monthly returns, and they increase the longer a return is outstanding. You also have to file a return (or a nil return, if you've told HMRC) every month you're registered. We set deadlines and reminders so returns go in before the 19th.

Can you take over CIS mid-year from our current accountant or bookkeeper?

Yes. We start with a review of recent returns and subcontractor verification records, correct anything that needs it, then take over from the next monthly return.

Do you also handle reverse charge VAT?

Yes. For most construction services reported under CIS between VAT-registered businesses, the domestic reverse charge applies. We check each customer's end-user or intermediary status and set up invoicing so it's applied correctly.

Book a Discovery Call

Book a construction company discovery call.

Book a Discovery Call 07469 885455info@taxbysterling.co.uk