· Reviewed by Nimra Khalid
What is CIS bookkeeping?
CIS bookkeeping is the record-keeping behind the Construction Industry Scheme: verifying subcontractors with HMRC, applying the right deduction rate to the labour element of each payment, issuing monthly statements, and reconciling deductions made and suffered to the ledger and HMRC. It sits alongside PAYE payroll, where Real Time Information submissions report employee pay to HMRC on or before each payday.
-
CIS and payroll RTI: what we do and how it runs
CIS bookkeeping is the record-keeping behind the Construction Industry Scheme: verifying subcontractors with HMRC, applying the right deduction rate to the labour element of each payment, issuing monthly statements, and reconciling deductions made and suffered to the ledger and HMRC. It sits alongside PAYE payroll, where Real Time Information submissions report employee pay to HMRC on or before each payday.
01 / 06 -
What it is
CIS bookkeeping is the record-keeping behind the Construction Industry Scheme: verifying subcontractors with HMRC, applying the right deduction rate to the labour element of each payment, issuing monthly statements, and reconciling deductions made and suffered to the ledger and HMRC. It sits alongside PAYE payroll, where Real Time Information submissions report employee pay to HMRC on or before each payday.
02 / 06 -
What you get
CIS deductions calculated, verified and reconciled every month
03 / 06 -
How it runs
Subcontractor payment and deduction statements ready by the 19th
04 / 06 -
Discovery call
A 20-minute call about your subcontractor numbers, whether you are a contractor, subcontractor or both, your payroll software, pay frequency and who submits to HMRC today.
05 / 06 -
A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
Who it is for
Contractors paying subcontractors
You pay a dozen subbies a month and the CIS return is a scramble. You want verification, deductions and statements handled on a calendar, with the ledger agreeing to the return.
Subcontractors with CIS suffered
Deductions taken from your invoices need tracking so they offset your PAYE liability or come back at year-end. You want every deduction matched to a statement.
Building firms with employees and subbies
A mix of PAYE staff, CIS subcontractors and materials-heavy invoices means payroll RTI, CIS returns and the books all have to tie. One team keeps them in step.
What's included
- Subcontractor verification data compiled for HMRC checks before first payment
- Deduction rate applied per subcontractor: 20 percent, 30 percent or gross payment status
- Labour and materials split checked on every subcontractor invoice
- Monthly CIS deduction schedule reconciled to payments made
- Payment and deduction statements prepared for each subcontractor by the 19th
- CIS300 monthly return figures prepared for you or your accountant to submit
- CIS suffered tracked and reconciled to statements received, for subcontractors
- CIS liability reconciled to HMRC payments in the ledger
- Payroll RTI data prepared each pay period in BrightPay, Xero Payroll or Sage
- FPS and EPS figures checked before you or your accountant submit
- Auto-enrolment pension data reconciled to the provider each period
- Domestic reverse charge VAT treatment applied on construction invoices
Deliverables and KPIs
| Deliverable | KPI we report | Cadence |
|---|---|---|
| CIS monthly return figures | Prepared at least 5 days before the 19th of the month deadline | Monthly |
| Subcontractor statements | Every paid subcontractor has a statement issued within 14 days of the tax month end | Monthly |
| CIS reconciliation | Deductions in the ledger agree to the return and to HMRC payments | Monthly |
| Payroll RTI data | FPS figures ready for submission on or before every payday | Per pay run |
| Pension reconciliation | Auto-enrolment contributions agree to the provider statement | Per pay run |
| Year-end CIS summary | Deductions suffered and made compiled for your accountant | Annually |
KPIs are what we measure and report, agreed per engagement. Service-level commitments are set in your agreement.
How it works
-
Discovery call
A 20-minute call about your subcontractor numbers, whether you are a contractor, subcontractor or both, your payroll software, pay frequency and who submits to HMRC today.
-
Access and scheme setup
You grant adviser access to Xero, QuickBooks Online or Sage and to BrightPay or Xero Payroll. We check subcontractor records, deduction rates and the CIS settings in your software.
-
First month in parallel
A named accountant prepares the CIS schedule, statements and RTI data for the current month alongside your usual process, reconciling every deduction to the ledger.
-
Monthly CIS and per-run RTI cycle
Each tax month the CIS figures and statements are ready before the 19th; each payday the RTI data is checked before submission. Everything is reviewed under Two-Tier Review and logged in the LedgerDesk portal.
Software we work in
How much does cis and payroll rti cost?
CIS and payroll support is priced as a fixed monthly fee based on the number of subcontractors paid each month, the number of employees on PAYE, pay frequency, and whether bookkeeping is included. BrightPay, Xero or Sage subscriptions stay in your name. Pricing depends on volume and scope, so we send a custom quote within 1 business day.
What moves the quote
- Number of subcontractors paid per month and how often rates change
- Number of PAYE employees and pay frequency
- Whether you are a contractor, a subcontractor, or both
- Whether monthly bookkeeping and VAT are included
Market benchmarks
| Market | Typical range | Source |
|---|---|---|
| UK | Fixed-fee bookkeeping £100 to £1,500 per month; hourly £20 to £55; in-house bookkeeper £24.7k to £32.1k plus employer NI at 15 percent | UK provider pricing surveys (2026) |
Third-party ranges for orientation, not our prices.
Get a custom quote No setup fee. Month-to-month.
CIS and payroll RTI for your industry
Case study
2 years of books caught up
Case studyTwo years of catch-up bookkeeping for a contractor before a bank loan
A general contractor in the Mountain West had run for two years on bank balances and a box of receipts. The business was busy, but when the owner applied for an equipment and working-capital loan, the bank asked for two years of financial statements, and the QuickBooks Online file had not been touched since the previous bookkeeper left. The owner engaged LedgerBPO for catch-up bookkeeping, bank reconciliation and financial reporting. A named accountant, a backup and a team lead rebuilt 24 months of books inside the contractor's existing QuickBooks Online file, reconciled every account and prepared the statements the lender asked for. The contractor's CPA reviewed the results and handled the tax returns. LedgerBPO handled the books.
- Months of books outstanding240
Security and compliance
- Adviser access only; submissions and HMRC payments stay with you or your accountant
- MFA on every login, per-client access log, GDPR data-processing agreement available
- Subcontractor UTRs and employee data stay inside your software; no local downloads
Full control list on the security page and country rules on the compliance page. Certifications are listed only when held.
Frequently asked questions
How much do CIS bookkeeping services cost?
Pricing depends on volume and scope, and we send a custom quote within 1 business day. As a market reference, UK fixed-fee bookkeeping runs £100 to £1,500 per month and hourly support £20 to £55, while an in-house bookkeeper costs £24.7k to £32.1k plus employer NI at 15 percent (UK provider pricing surveys, 2026). CIS is quoted by subcontractor count.
Do you submit the CIS return or RTI to HMRC?
No. We prepare the CIS300 figures, subcontractor statements and the FPS and EPS data inside your software. You or your accountant submit to HMRC and make the payments. Keeping submission with the responsible person means the figures are seen before they go, and we never move money.
How are CIS deduction rates decided?
HMRC verification tells you whether a subcontractor is registered, which sets the rate: 20 percent for registered, 30 percent for unregistered, and 0 percent for gross payment status. We compile the verification data before the first payment, record the rate against each subcontractor, and apply it to the labour element only, never to materials.
What are the CIS deadlines each month?
The CIS tax month runs from the 6th to the 5th. The monthly return and payment are due by the 19th, and subcontractors must receive their payment and deduction statement within 14 days of the tax month end. We prepare the figures at least five days before the 19th so you have time to review.
Can you track CIS suffered for a subcontractor business?
Yes. Every deduction taken from your invoices is recorded against the contractor's statement, reconciled to what you were paid, and summarised so it can be set against PAYE liabilities through the EPS or claimed at year-end by your accountant. Missing statements are chased under your name.
Which payroll software do you work in?
BrightPay, Xero Payroll and Sage Payroll are the most common in our UK construction clients. We work in your subscription with a preparer role. Auto-enrolment pension contributions are reconciled to your provider each pay run, and RTI figures are checked before you submit.
How does the domestic reverse charge affect my books?
Since 2021, VAT on most construction services between VAT-registered businesses in the CIS is accounted for by the customer, not the supplier. We check each sales and purchase invoice for the correct reverse charge treatment so the ledger and the VAT return agree. Our VAT return preparation service covers the return itself.
Do you also do the bookkeeping for construction firms?
Yes. Most CIS clients combine this service with our UK bookkeeping service so job costing, retentions, applications for payment and CIS all live in one reconciled ledger. If the books are behind, a catch-up project comes first. Your accountant then receives one reconciled file at year-end rather than three sets of records.
Ask an AI assistant to summarize this page
Opens the assistant with a prefilled prompt so you can check our claims against the page yourself.