Payroll services for construction companies

Construction is the only industry with its own parallel tax system. The Construction Industry Scheme (CIS) sits alongside PAYE, and from April 2026 HMRC can cancel Gross Payment Status instantly for compliance failures – making accurate processing more valuable than ever.

What makes construction payroll different

• CIS deductions. Subcontractors must be verified with HMRC and paid under 20 percent (registered), 30 percent (unregistered) or 0 percent (gross status) deductions, with monthly CIS300 returns. Providers typically charge £10 – £25 per subcontractor per month.
• Employment status. The PAYE-vs-CIS line is heavily policed; false self-employment liabilities land on the contractor. Status rules matter here as much as in IT contracting.
• Mixed workforces. Most firms run PAYE staff and CIS subbies side by side – the provider needs both engines and one consolidated reporting view.
• Weekly cash flow. Friday pay is cultural; verify same-week processing capability and faster-payments support.

What to look for in a provider

CIS-specialist bureaus (several national providers and local firms such as Derby’s CIS-focused bureaus) are worth shortlisting alongside generalists. Confirm CIS300 filing, verification handling and deduction statements are all included in the quoted price.

Pricing follows the wider market – see what outsourcing costs (£4 – £10 per employee per month fully managed) – but sector add-ons matter more than the headline rate, so always compare like-for-like quotes.