Payroll for construction firms
We run your payroll weekly, fortnightly or monthly and send your payslips. Once you have approved each pay run, we tell HMRC what you paid, on or before payday.
If CIS is taken off your company's invoices, payroll is the simplest way to get it back
If your limited company works as a subcontractor, contractors take CIS off its invoices at 20% or 30%. That money is not lost. Most limited companies get it back through payroll, which is the simplest way: it is set against the PAYE and National Insurance your company owes, and reported each month on the Employer Payment Summary (the monthly report that tells HMRC what you owe and what you are setting off). If your company has no payroll, tell us and we will check the other routes.
Anything left over after the tax year ends can be claimed back from HMRC. For that claim, HMRC needs your payroll reports, your CIS returns (if you also pay subcontractors) and your Company Tax returns to be in first. So if your payroll is behind, a refund waits.
Running payroll and CIS in two different places makes it easy for the figures to disagree, and the claim needs them to agree. We can run both for you.
See what payroll would cost for your company.
See your priceWho does what each month
Payroll runs on the same tax month as CIS, from the 6th to the 5th, with the same two deadlines, the 19th and the 22nd. If you have both, that is one set of dates, not two.
A payroll month once we take it over. The 19th and the 22nd are the same deadlines as your CIS.
| When | What happens | Who does it |
|---|---|---|
| Before every payday | You approve the pay run. We then send the payslips and tell HMRC what you paid (the Full Payment Submission), on or before payday | You, then us |
| Every payday | Pay your staff their wages | You |
| By the 19th of the next month | Employer Payment Summary sent, including the CIS you are setting off | Us |
| By the 22nd | Pay HMRC the PAYE and National Insurance, plus any CIS you took off subcontractors. If the 22nd is a weekend or bank holiday, pay by the working day before | You |
| Any month you paid nobody | Employer Payment Summary still sent, so there is no late penalty | Us |
Paying subcontractors as well as staff
Your employees go through payroll. Subcontractors you pay under CIS do not. They are checked with HMRC, have CIS taken off the labour part of their invoice at 20%, or 30% if HMRC cannot match them, get a statement, and go on your monthly CIS return.
The CIS you take off is paid to HMRC in the same payment as your PAYE and National Insurance, by the 22nd. So with staff and subcontractors, you have one HMRC bill a month.
We run both. We send the payroll reports to HMRC ourselves once you approve each pay run, and we prepare your CIS return in full for you to submit.
Weekly payroll and how it is priced
If you pay weekly, that means 52 pay runs and 52 reports to HMRC a year instead of 12. It does not cost four times as much, because the pay runs are the easy part. The extra work is the checking and sorting out the odd week that goes wrong, so weekly payroll is priced at double the monthly rate per person. You see the price before you sign anything.
Weekly, fortnightly or monthly, once you have approved the pay run we send the Full Payment Submission to HMRC on or before the day your staff are paid, and your payslips go out the same day.
Payroll changes announced in Budget 2026
- From 1 April 2027, the minimum hourly pay is set to be £13.21 for workers aged 21 and over, £11.27 for 18 to 20 year olds and £8.31 for 16 and 17 year olds and eligible apprentices (set by regulations).
- From 6 April 2027, company cars, vans, fuel and medical benefits that are taxable benefits are set to go through payroll instead of being reported after the year ends, with no penalty for some non-deliberate mistakes in the first year (needs Parliament to pass Finance Bill 2026-27).
- The Lower Earnings Limit for National Insurance is set to rise from £129 to £133 a week for 2027 to 2028 (set by regulations). That is the weekly pay from which a worker's National Insurance record can count towards their State Pension, even before they pay any.
- From 6 April 2028, the most you can pay staff tax-free for food and drink on work trips, without checking receipts, is set to be £20 for over 5 hours, £60 for over 10 hours and £75 for over 24 hours (set by regulations).
- From April 2029, you are set to need a Direct Debit in place for PAYE, with some exceptions, though you can still pay another way before a cut-off date (a plan, could change).
If any of this applies to you, tell us and we will plan it into your payroll.
You still need to tell HMRC in a month you paid nobody
If you paid nobody in a tax month, you still have to send HMRC an Employer Payment Summary for that month. CIS and VAT work the same way: a quiet CIS month still needs a return, and so does a VAT quarter with no VAT in it.
These are easy to miss because nothing reminds you, but the penalty still comes. If you have payroll, CIS and VAT, that is three chances to miss one. We keep track of all three for you.
What we do not do
- Advise on employment status or IR35. Whether someone is employed or self employed is a question for a specialist adviser, because getting it wrong is expensive.
- Choose or set up your workplace pension scheme. Once you have one, we assess your staff for it and take the pension deductions through your payroll.
- Decide who goes on payroll and who is paid under CIS. You tell us, and we let you know if the paperwork does not match.
- Do your year end accounts or corporation tax. Your accountant does those.
You can have payroll done alongside our monthly bookkeeping, which covers your bank, VAT and CIS in one fee. Want to see how we work first? Try the free CIS deduction calculator or read how CIS works. No sign up needed.
Common questions about payroll
We pay weekly. Is that a problem?
No, we run weekly and fortnightly payroll too. Weekly means 52 pay runs and 52 reports to HMRC a year instead of 12, so it is priced higher than a monthly payroll. We ask how often you pay before we give you a price, so there are no surprises.
Do my subcontractors go on the payroll?
No. Subcontractors paid under CIS are not employees, so they go on your monthly CIS return (the CIS300) instead of the payroll.
Should my workers be on PAYE or CIS?
It is not a free choice. It depends on whether the person is really employed or self employed, and HMRC says you must check whether you should employ someone before you pay them as a subcontractor. If they should have been an employee, you can be penalised. That check is for a specialist adviser. Once it is settled, we run the payroll for your staff and the CIS for your subcontractors.
What do you need from me each payday?
Hours and overtime for anyone paid by the hour, any bonus, holiday or sick days, and the details of anyone who has started or left. Send them before the cut off we agree with you, and we prepare the pay run. Once you approve it, we send the payslips and the report to HMRC.
Can I run payroll myself?
Yes, with payroll software. You then have to tell HMRC what you paid on or before every payday, send an Employer Payment Summary in any month you paid nobody, and pay HMRC by the 22nd. If your company has CIS taken off its invoices, it is set off through the same payroll. If you would rather not keep all of that going, we run it for you.
How do I get back the CIS that was deducted from my company?
Most limited companies get it back through payroll, which is the simplest way. The CIS taken off your invoices is set against the PAYE and National Insurance your company owes, and reported on the Employer Payment Summary. Anything left over after the tax year ends can be claimed back from HMRC, which needs your payroll reports, CIS returns (if you also pay subcontractors) and Company Tax returns to be in first. If your company has no payroll, tell us and we will check the other routes.
What if I paid nobody this month?
You still have to tell HMRC by sending an Employer Payment Summary for that tax month. Like a nil CIS or VAT return, it is easy to miss because nothing reminds you. We send it for you.
Can you do the payroll and the CIS together?
Yes. They share the same deadlines, the Employer Payment Summary by the 19th and payment by the 22nd, and the CIS taken off your company is set off through the payroll. Running them together means the figures agree and nothing is missed.
Do you do P60s, P45s and statutory sick and maternity pay?
Yes. Every employee gets a P60 at the end of the tax year, and a P45 when they leave. We work out statutory sick pay and maternity pay through the payroll, and claim back from HMRC what you are entitled to. Once you have a workplace pension, we also check which staff must be enrolled and take their contributions through the payroll.
Who sends the payroll reports to HMRC?
We do. Once you have approved each pay run, we send the report to HMRC (called RTI, Real Time Information) on or before payday. We also prepare and file your VAT return once you approve it. Your CIS return (the CIS300) is different: we prepare it in full and you submit it yourself.
Primary sources and further reading
Everything on this page is drawn from HMRC's own published guidance.
- Running payroll: what to do each monthGOV.UK (opens in a new tab)
- Pay employers' PAYEGOV.UK (opens in a new tab)
- Claim a refund of Construction Industry Scheme deductions if you're a limited company or an agentHMRC (opens in a new tab)
- What you must do as a Construction Industry Scheme (CIS) contractorGOV.UK (opens in a new tab)
- Construction Industry Scheme: a guide for contractors and subcontractors (CIS340)HMRC (opens in a new tab)
- Budget 2026GOV.UK (opens in a new tab)
- Budget 2026: Overview of Tax Legislation and Rates (OOTLAR)GOV.UK (opens in a new tab)
- Annex A: rates and allowancesGOV.UK (opens in a new tab)
- Changes to reporting of benefits in kind from April 2027HMRC (opens in a new tab)
- National Minimum Wage and National Living Wage ratesGOV.UK (opens in a new tab)
- National InsuranceGOV.UK (opens in a new tab)
Join the waitlist for payroll
When you join, tell us whether you pay weekly, fortnightly or monthly, how many people you pay, and whether CIS is taken off your own invoices. That is all we need to give you a price. Join the waitlist for 2027.