CIS Subcontractor Services for Overseas Businesses

If your business is delivering construction or installation services in the UK—even as an overseas company—you are likely a subcontractor under the Construction Industry Scheme (CIS). If you are not properly registered, your customers must deduct 30% from your payments. Even with basic registration, 20% may still be withheld.

This can seriously impact your cash flow, especially if you must pay your own subcontractors in full (gross). At Türner & Co, we help international businesses avoid these pitfalls by securing Gross Payment Status and ensuring full CIS and tax compliance.

Why Gross Payment Status Matters

Obtaining Gross Payment Status means no CIS tax is withheld from your payments. Without it:

  • You may face 20–30% deductions, even when paying your own subcontractors gross.
  • Cash flow becomes strained, especially on large projects.
  • Recovering withheld tax takes time and depends on full tax compliance.


Even more importantly, if you lose Gross Payment Status due to CIS or other tax non-compliance (e.g. late VAT returns, payroll errors, missed CIS filings), it can be extremely difficult to get it back.

We help overseas subcontractors: register, achieve gross status, and stay compliant.

CIS Subcontractor Registration: What You Need to Know

  • Apply for Gross Payment Status if you:
  • Support for all entity types:
  • Typical Timelines:
    • Limited Companies: 6–8 weeks
    • Sole Traders/Partnerships: longer, with stricter rules
  • We handle the entire process, liaising directly with HMRC.

Ongoing Compliance: Don’t Risk Losing Gross Status

Once you’ve secured Gross Payment Status, HMRC will monitor all UK tax compliance:

  • CIS returns and payment statements
  • VAT returns (especially under the Domestic Reverse Charge)
  • Payroll and PAYE obligations
  • Corporation tax filings

If you are also engaging subcontractors, you must register separately as a CIS Contractor – read more →

Many businesses don’t realise that one compliance failure (even as a contractor) can cause Gross Payment Status to be withdrawn, causing a sudden 20% withholding on all incoming payments.

We work with:

  • Project managers
  • Finance directors
  • Procurement teams

…to ensure everyone in your business understands the CIS and VAT rules, especially purchase ledger teams who handle invoices. One mistake—such as paying gross when you shouldn’t—can be very expensive and hard to reverse.

Invoicing, Labour and Materials – Get It Right

CIS deductions apply only to the labour element of a subcontractor’s invoice—but only if the materials are correctly itemised.

If not:

  • HMRC may apply CIS to the full invoice amount.
  • Invoice splitting (to artificially separate labour and materials) is not permitted.

 
We help you draft correct invoices and check that your subcontractors issue theirs properly too.

Recovering CIS Deductions

If CIS tax is withheld before you secure gross status, it may still be recoverable.

We assist with:

  • Submitting refund claims to HMRC
  • Offsetting deductions against other tax liabilities
  • Ensuring payment statements and documentation are in order


For Limited Companies, CIS recovery is typically handled through the monthly EPS submission under PAYE.

FAQs

No, but if you don’t register, your clients must deduct 30%—and you can’t claim it back until you are registered.

It allows you to be paid in full, without CIS deductions. You must meet certain UK turnover and tax compliance tests.

We help clients regain gross status—by reviewing compliance and preparing a structured re-application.

Yes, and if you hire subcontractors, you must register separately as a CIS Contractor. Read more →

If labour and materials aren’t separated clearly, CIS may be applied to the entire invoice. You also risk losing gross status if mistakes are repeated.

Yes. Many construction services fall under the UK Domestic Reverse Charge VAT rules. Read more →

Contact Our Experts

Whether you’re applying for CIS for the first time—or need help recovering from a compliance issue—Türner & Co is here to support you.

Get expert support with CIS registration, gross status, and ongoing compliance—so your business can operate efficiently in the UK.

Contact us today →

Nathan Widdowson

Gaynor Dunmall

Manager