CIS Nil Returns Are Back, Is Your Payroll Ready?
The Construction Industry Scheme has changed again, and this time, contractors cannot afford to miss it.
From 6 April 2026, HMRC has brought back CIS nil returns. That means if you are a contractor registered under CIS and you do not pay any subcontractors in a tax month, you may still need to take action.
No subcontractor payments? That no longer means “nothing to do”. You must either:
- Submit a CIS nil return; or
- Tell HMRC in advance that you will not be paying subcontractors for that month.
Fail to do this, and you could face HMRC penalties.
For busy construction firms, this is exactly the kind of compliance detail that can easily be missed. A quiet month, a delayed project, a gap between subcontractor payments and suddenly your business is exposed to unnecessary penalties.
Why This Matters
CIS compliance is not just about making deductions. It is about proving to HMRC that your payroll process is organised, accurate and under control.
The return of CIS nil returns means contractors now need a clear monthly process, even when no subcontractors have been paid. That affects:
- Contractors using subcontractors occasionally.
- Construction firms working on project-based labour.
- Agencies supplying construction workers.
- Businesses with seasonal labour patterns.
- Firms that assumed “no payments” meant “no filing”.
HMRC has made it clear: if you are active under CIS, every month needs to be accounted for.
Public Body Payments changes
HMRC has also confirmed that payments made to local authorities and certain public bodies are being taken outside the scope of CIS.
That means contractors need to be even more careful when deciding whether CIS deductions apply. Getting this wrong could mean incorrect deductions, unnecessary admin, payment disputes or confused records.
The Real Risk for Contractors
The biggest danger is not usually deliberate non-compliance. It is poor process.
A missed return.
A subcontractor not verified properly.
A nil month overlooked.
A public body payment treated incorrectly.
A payroll file that does not match HMRC’s expectations.
These are the small mistakes that can turn into costly fines.
Why Contractors Choose Centurion Payroll
Centurion Payroll is built for the construction industry. CIS payroll is not an add-on, an afterthought or a generic payroll service, it is at the heart of what Centurion does.
As a specialist CIS payroll provider, Centurion helps contractors, agencies and construction businesses stay ahead of HMRC requirements with accurate, reliable and compliant payroll support.
With Centurion Payroll, your business benefits from:
- Specialist CIS payroll knowledge.
- Accurate subcontractor payments.
- Support with CIS deductions and reporting.
- Reliable payroll processing.
- A personal service from people who understand construction.
- A smoother, more professional payroll experience for your workforce.
When HMRC changes the rules, Centurion helps make sure your business is not left behind.
Stay Ahead of CIS Compliance
CIS nil returns are back. HMRC is tightening its expectations. Contractors need a payroll partner that understands the construction sector inside out.
Speak to us today about specialist CIS payroll support for your business.
Call: 01684 584793
Email: accounts@centurionpayroll.co.uk