CIS Compliance and Subcontractor Management
Manage subcontractors, verify CIS status, process deductions, and submit monthly returns to HMRC.
In this guide
Adding subcontractors
Navigate to Dashboard → Subcontractors → Add Subcontractor. Enter their details — name, UTR (Unique Taxpayer Reference), NI number, company details if applicable, and trade type.
Gaffer verifies their CIS registration status with HMRC automatically. You'll see whether they're registered for gross payment (0% deduction), net payment (20% deduction), or unregistered (30% deduction).
CIS deductions
When you create a payment to a subcontractor, Gaffer calculates the CIS deduction automatically based on their verified status. The deduction amount, labour/materials split, and VAT are all handled for you.
Materials are exempt from CIS deductions — make sure you separate materials from labour on subcontractor invoices to avoid over-deducting.
💡 Tip: Always verify subcontractors with HMRC before making the first payment. If you pay an unverified subcontractor at the wrong rate, you're liable for the difference.
Monthly returns
CIS requires monthly returns to HMRC by the 19th of each month, covering the previous tax month (6th to 5th). Gaffer compiles your return automatically from that month's subcontractor payments.
Review the return in Subcontractors → Monthly Return, then submit it to HMRC. Gaffer generates the EPS/FPS file in the correct format for HMRC's gateway.
Self-billing invoices
With self-billing, you create the invoice on behalf of the subcontractor. This simplifies paperwork for both sides — the subcontractor doesn't need to send you an invoice, and you have a clean audit trail.
Self-billing requires a written agreement with each subcontractor. Gaffer generates the agreement template — both parties sign it digitally.
Insurance and accreditation tracking
Track subcontractor insurance policies (public liability, professional indemnity, employer's liability) with expiry dates. Gaffer alerts you before policies expire.
This is critical for compliance — if a subcontractor's insurance has lapsed and there's an incident on site, your business could be liable.