April 2026 is a pressure test for construction payroll: frozen income tax thresholds, changed employer NIC costs, stricter CIS fraud rules, and MTD for ITSA mandation for many trades. This guide translates the 2026-27 rules into a practical playbook for owners and office teams running PAYE, CIS, and director payroll without nasty surprises.
From April 2026, many sole traders and landlords move into Making Tax Digital for Income Tax with quarterly updates - and HMRC is clear that spreadsheets alone are not enough. This guide translates the 2026 rules into a trades workflow: what counts towards the threshold, how quarterly reporting changes your admin rhythm, what “digital evidence” really means on site, and how to set up Xero, QuickBooks or Sage so CIS, materials and VAT don’t become a mess.
Free, compliant UK construction invoice templates for contractors and subcontractors, covering how to fill them out and manage CIS, retention, and reverse charge VAT.
To verify subcontractors in the Construction Industry Scheme, ensure correct identifiers, resolve error 7912, and follow specific software procedures in Xero, QuickBooks, or Sage.
CIS reconciliation Google Sheet template assists UK contractors in efficiently tracking subcontractor deductions, HMRC payments, and reconciling accounts with Xero or QuickBooks monthly.
Guide on setting up VAT self-billing for CIS subcontractors using Xero and QuickBooks, including necessary agreements and automation options.
Requirements and procedures for issuing CIS payment and deduction statements to subcontractors using Xero and QuickBooks, including deadlines and common mistakes.
Guide and template for subcontractors to create effective scopes of work, keeping clarity, compliance, and timely payments.
HMRC's VAT inspection requirements for construction firms, covering necessary records, compliance checks, and tips for successful inspections.
JCT application for payment process, including timelines, necessary documentation, and recording methods in Xero and QuickBooks, along with common mistakes and automation tips.
Guide for UK construction businesses on creating a 13-week cash flow template, covering essential components, setup, and weekly updates.
Differences between PAYE payroll for employees and CIS for subcontractors, covering setup processes in Xero and QuickBooks, and common mistakes to avoid.
How to automate CIS returns using Xero and QuickBooks by capturing job data, setting up workflows, and keeping compliance with HMRC regulations.
How to manage Domestic Reverse Charge VAT on mixed invoices in Xero and QuickBooks, covering invoice requirements, setup processes, and common mistakes.
Automation playbook for managing CIS subcontractor payments, significantly reducing administrative time and errors through processes and software integration.
Subcontractor onboarding checklist for UK construction, covering essential compliance steps including right to work, CIS verification, insurance, contracts, RAMS, and site induction.
Process for verifying subcontractors under the Construction Industry Scheme, covering necessary information, verification methods, and automation options for record-keeping.
Construction contractors must file a CIS300 monthly return to HMRC by the 19th, even if no payments were made, to avoid penalties.
Guide on the Domestic Reverse Charge VAT for construction, covering its application, requirements, invoice wording, and VAT return procedures for UK firms.
Correct workflows for UK contractors using ServiceM8 with Xero to ensure accurate Domestic Reverse Charge and CIS reconciliations.