CIS Payroll — structured, compliant, clear.
Payroll administration for subcontractors operating under the Construction Industry Scheme. Clear deductions, accurate records, and payment processes aligned with HMRC requirements.
What CIS payroll support means in practice
The Construction Industry Scheme (CIS) is an HMRC framework that governs how payments are made to subcontractors working in the UK construction sector. Under CIS, contractors are required to deduct money from subcontractor payments and pass those deductions to HMRC as advance payments towards the subcontractor's tax and National Insurance liability.
Navigating this correctly requires accurate registration, proper verification, precise calculation of deductions, and clear documentation for every payment made.
Rockwool Umbrella Solutions handles this administrative framework on behalf of the workers and agencies we support — providing structured CIS payroll processing that aligns with how the scheme is designed to work.
Important: The information on this page is provided for general understanding of CIS only. It does not constitute tax advice. Subcontractors with specific tax questions should consult a qualified accountant or tax adviser.
CIS payroll support for those who need structure
Our CIS payroll service is designed for specific roles within the construction supply chain. If you fall into one of the following categories, we may be able to support your payroll administration.
Self-Employed Subcontractors
Operating on construction sites under a self-employed basis, with CIS as the relevant payment framework for your work.
Specialist Trade Contractors
Electricians, plumbers, groundworkers, joiners and other tradespeople working on contract across multiple sites or clients.
Agency-Placed Subcontractors
Workers engaged through recruitment agencies where the agency requires a structured CIS payroll partner to manage the deductions correctly.
Labour-Only Subcontractors
Workers providing labour under CIS who want clarity on their deduction rate and confidence in how their payments are processed.
How CIS deductions work in principle
Understanding how CIS deductions are calculated helps contractors plan their finances correctly. Below is a plain overview of how the scheme operates.
Deduction Rates
HMRC sets the CIS deduction rates applicable to subcontractors. The rate applied depends on the registration status of the subcontractor. Registered subcontractors are subject to a standard deduction rate, while unregistered subcontractors are subject to a higher rate. Subcontractors with gross payment status are not subject to deductions at source.
We always confirm your current registration status with HMRC before processing payments to ensure the correct rate is applied.
What We Deduct From
CIS deductions are applied to the labour element of a subcontractor's payment. Materials and certain other allowable costs are not subject to CIS deductions, provided they are separately identifiable and correctly documented.
We clearly separate labour and materials in every payslip to ensure deductions are applied correctly and the subcontractor's net payment is accurate.
Note: CIS is administered by HMRC. Current deduction rates, thresholds, and registration requirements are published on GOV.UK. Rockwool Umbrella Solutions operates in line with the current CIS framework but is not a tax adviser and does not provide HMRC guidance. Always verify your CIS registration status and consult a qualified tax professional for advice specific to your situation.
How CIS payroll administration works with us
Registration and verification
We collect your details and verify your CIS registration status with HMRC before any payment is made. This step ensures the correct deduction rate is applied and your details are accurate from the outset.
Agency or contractor engagement
We work directly with your agency or the contractor engaging your services to confirm the payment schedule, labour rate, and any allowable material costs relevant to your work.
Payment processing
Payments are processed to the agreed schedule. The labour element is identified, the correct CIS deduction is calculated and recorded, and the net payment is made to you.
Payslip and deduction statement
You receive a clear payslip showing gross payment, labour element, deduction applied, deduction rate used, and net amount paid. These records are yours to retain for your own tax submissions.
What contractors typically want to understand
What agencies need from a CIS payroll partner
When an agency places subcontractors on construction sites, the CIS administration has to work correctly — for the worker, the agency, and the end client. Errors in CIS processing create downstream problems that are difficult to resolve.
Ready to get your CIS payroll sorted?
Whether you're a subcontractor looking for a clear payment structure or an agency needing a reliable CIS payroll partner, we're here to help.