Getting your monthly CIS returns right

If you're a contractor working within the Construction Industry Scheme (CIS), HMRC has identified three common errors that are worth checking before submitting your next return.

Using the wrong deduction rate – make sure you're using the latest rate HMRC has confirmed for each subcontractor, rather than relying on an old return.

Forgetting material costs – materials should be recorded separately from labour, as CIS deductions generally apply to labour rather than materials.

Entering incorrect figures – double-check your payment, material and deduction figures against your invoices and accounting records before submitting.

HMRC is due to contact CIS members about these common errors in October, so it's worth checking your returns now rather than waiting for a letter.

If you're unsure about your CIS deductions, we're happy to help.

A new tool to check your tax deadlines

Trying to remember every tax deadline can sometimes feel like a tax return in itself.

HMRC has introduced a new online tool to help small businesses check their filing and payment dates. It currently covers:

• CIS
• PAYE
• Self Assessment
• VAT

You don't need to sign in, and the information you enter isn't sent to HMRC. The tool can also integrate with most calendar applications.

You can find it here:

https://www.gov.uk/guidance/check-your-tax-filing-and-payment-deadlines

Of course, if you'd rather leave the remembering to someone else, that's what we're here for!

Missed the Employment-Related Securities deadline?

The deadline for 2025/26 Employment-Related Securities (ERS) returns was 6 July 2026.

If your company hasn't submitted its return, including a nil return where required, you may already have received a £100 late-filing penalty.

And unfortunately, it can get more expensive. A further £300 penalty can apply after three months, followed by another £300 after six months.

Even if you're appealing a penalty, the outstanding return still needs to be submitted.

If you're unsure whether your company needs to submit an ERS return, give us a shout.

Companies House identity checks

Directors should also have Companies House identity verification firmly on their radar.

New directors have been required to verify their identity before acting as a director since November 2025. Existing directors need to complete verification during the 12-month transition period, linked to their company's next confirmation statement.

There isn't an option to opt out, and the Insolvency Service has now secured its first convictions for failing to verify identities.

So, if you've been putting it off, this might be a good time to tick it off the list.

Need a hand with your Companies House requirements? We're here to help.

Loan Charge settlement scheme

A new settlement scheme could help eligible taxpayers with outstanding loan charge liabilities reduce what they owe by up to £70,000.

The scheme relates to historic tax-avoidance loan schemes and could see most eligible taxpayers receive reductions of at least 50%, with around a third potentially able to settle without making a payment.

HMRC is contacting eligible taxpayers, although you don't necessarily need to wait for a letter before speaking to your named caseworker.

If you're affected by the loan charge and aren't sure what the new arrangements mean for you, we'd be happy to help.

Supporting small businesses with access to finance

Getting finance isn't always straightforward, particularly for smaller businesses.

A recent FCA review found that SMEs face challenges when accessing finance, including navigating the market, preparing applications and finding suitable products.

The review also highlighted that 54% of SMEs aren't currently using external finance, while bank lending to SMEs was estimated to be 22% lower in real terms in 2025 than in 2012.

The FCA is now looking at ways to reduce some of the practical and regulatory barriers, including digital verification, Consumer Credit Act reform and the development of open finance.

If you're considering borrowing to invest in or grow your business, it's worth understanding how the repayments will affect your cash flow before committing.

And, as always, if you'd like to talk through your numbers or your plans, we're here to help.

Categories: Positive Accountant