CIS for limited company subcontractors
A limited company gets its CIS deductions back through its own payroll, month by month.
Registering the company
Register the company as a CIS subcontractor online (quickest) or by post. You need:
- The company's legal name, and trading name if different.
- The company's UTR.
- The Company Registration Number.
- The VAT number, if VAT registered.
- The date the company started trading.
If the company also pays subbies, register it as a contractor too.
What the contractor needs from you
To verify the company, the contractor needs the company name, the company UTR and the Company Registration Number. They must match what HMRC holds.
Getting the deductions back: through payroll
Run payroll as usual
Send your Full Payment Submission (FPS) as normal.
Send an EPS at the same time
On the Employer Payment Summary, enter the CIS deductions taken off the company so far this tax year.
Pay HMRC the rest
HMRC takes the deductions off what you owe in PAYE. You pay the balance by the usual date.
Carry any extra forward
If the deductions are more than you owe, carry the rest forward within the same tax year. Tell HMRC on the EPS that you have nothing to pay.
Keep a record of the deductions you have used. HMRC's form CIS132 is one way. Keep the monthly statements from your contractors too.
Deductions left at the end of the tax year
Claim a refund using HMRC's repayment claim form for limited company subcontractors. If HMRC asks for evidence, reply by the date it gives, or it may change your claim using its own figures.
The same form is used if the company goes into liquidation or administration.
GOV.UK says not to use your company's Corporation Tax return to get CIS deductions back. It may lead to a penalty.
Gross payment status for a company
A company can apply to be paid with nothing taken off. It needs £30,000 of turnover for each director, or at least £100,000 for the whole company. The full tests.
We checked this against the sources below on 31 Oct 2026. Rules change. You stay responsible for your own tax, so check anything unusual with your accountant or on gov.uk.
Sources
- GOV.UK, "What you must do as a CIS subcontractor: how to register" (gov.uk/what-you-must-do-as-a-cis-subcontractor/how-to-register)
- GOV.UK, "What you must do as a CIS subcontractor: pay tax and claim back deductions" (gov.uk/what-you-must-do-as-a-cis-subcontractor/pay-tax-and-claim-back-deductions)
- GOV.UK, "What you must do as a CIS subcontractor: how to get gross payment status" (gov.uk/what-you-must-do-as-a-cis-subcontractor/gross-payment-status)
- GOV.UK, "What you must do as a Construction Industry Scheme (CIS) contractor" (gov.uk/what-you-must-do-as-a-cis-contractor)
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