Specialist Payroll Services
Typical CIS Payroll fees
A quote for CIS payroll is most useful when it separates setup, recurring processing, reports, and any specialist support. That gives employers a clearer view of the real cost.
Buyers usually look for CIS payroll when they need help with construction businesses paying subcontractors under CIS alongside PAYE staff. The strongest quote explains the provider's role, the employer's handover tasks, and the support route if something changes.
Pay close attention to incorrect CIS deductions, missed monthly returns, and confusion between employee payroll and subcontractor payments. That is often where two quotes that look similar on paper become very different after onboarding.
CIS Payroll cost drivers
These cost drivers are specific to CIS Payroll and should be discussed before comparing the monthly fee or project price.
What providers should check for CIS Payroll
Before comparing prices, check how each provider handles the items below.
- Verification checks
- Subcontractor count
- Whether the quote covers routine support only or also includes advice when payroll records need fixing.
- How employee changes, software access, pension files, HMRC submissions, and reports are handled.
- Whether setup, takeover, correction work, extra runs, and custom reports are included or separate.
- How the provider prices incorrect CIS deductions, missed monthly returns, and confusion between employee payroll and subcontractor payments.
Common CIS Payroll buying scenarios
Core inclusions for CIS Payroll
The best quotes make routine work, setup work, support, and exclusions visible before payroll starts.
- A timetable for data collection, draft review, approval, submissions, reports, and payslip release.
- Clear responsibility for subcontractor verification, CIS deductions, monthly returns, deduction statements, PAYE payroll, and HMRC records.
- A written scope for CIS payroll, setup work, recurring duties, and the first live payroll run.
- Specific wording for Subcontractor count.
- A list of exclusions so the employer knows what is not covered by the normal fee.
Get a more accurate CIS payroll quote
A provider can quote CIS payroll more accurately when you share current records, payroll dates, pension details, HMRC position, reports, and any known correction work.
CIS Payroll FAQs
What affects the cost of CIS payroll?
The main cost drivers are subcontractor count, verification work, payment frequency, deduction statements, and the quality of payment records.
Costs can also rise when a contractor has both PAYE staff and CIS subcontractors because the provider is handling two different payroll workflows.
If historic CIS records are incomplete, the provider may need to charge separately for checking, correcting, or rebuilding the records before submitting returns.
What makes a CIS payroll quote good value?
A good-value CIS payroll quote clearly includes verification, monthly returns, deduction statements, deadlines, and support responsibilities.
It should also explain what happens when subcontractor numbers change or when a return needs correcting.
The cheapest quote is not always best if it leaves the contractor handling HMRC queries, record checks, or statement production separately.
What happens if CIS payroll is submitted late?
Late CIS returns can create penalties and extra admin, so deadline control is a key part of the service.
A provider may charge more if they are asked to rescue a late return close to the deadline.
Good CIS payroll support should include a clear monthly timetable for sending payment information, approving figures, and submitting the return.
Can CIS payroll be taken over mid-year?
CIS payroll can be taken over mid-year, but the new provider needs accurate records for previous payments and deductions.
They may ask for earlier CIS returns, deduction statements, subcontractor verification records, and payment history.
If previous records are messy, expect a setup or review charge before the provider takes over live submissions.
Is CIS payroll charged per subcontractor?
CIS payroll is often charged using a monthly base fee plus a per-subcontractor or per-statement charge.
That pricing model works because every subcontractor can create verification, payment, deduction, and statement work.
If subcontractor numbers change every month, ask how the provider handles fluctuating volumes.
How are CIS deductions calculated?
CIS deductions depend on the subcontractor's HMRC verification status and the labour element of the payment.
Materials are normally treated differently from labour, so clean invoice records matter when calculating deductions.
A payroll provider should explain what records they need from you before they can calculate CIS deductions accurately.
Are monthly CIS returns included?
Monthly CIS returns are normally one of the core reasons contractors outsource CIS payroll.
The return needs to match the subcontractor payments, deduction rates, verification status, and any nil-return position for the month.
Ask whether the provider submits the return directly or only prepares the figures for you to approve and submit.
How much does CIS payroll cost?
CIS payroll is usually priced around the number of subcontractors, how often they are paid, and whether PAYE employees are processed at the same time.
A small contractor with a handful of subcontractors may only need verification checks, monthly CIS returns, and deduction statements.
A larger construction business may need PAYE payroll, CIS deductions, subcontractor records, corrections, and HMRC query support in one service.
Can CIS payroll link with bookkeeping software?
Some providers can align CIS payroll records with bookkeeping software, especially where subcontractor invoices and payments are already recorded digitally.
This can help keep CIS deductions, labour costs, materials, and payment records easier to reconcile.
If you use Xero, QuickBooks, Sage, or another system, ask whether the provider can work with your existing process.
Can CIS payroll include limited company subcontractors?
Yes, CIS payroll can include subcontractors who trade through limited companies as long as the correct business details are collected.
The verification process and deduction treatment still need to follow HMRC CIS rules.
The provider should confirm what details they need for each subcontractor before payments are processed.
How much does CIS payroll cost for twenty subcontractors?
A contractor with around twenty subcontractors should expect a higher monthly fee because there are more payments, statements, and records to check.
The provider may also need a clearer approval process so the return can be submitted on time each month.
At this level, it is worth asking whether the fee includes all statements or whether there is a per-subcontractor charge.
Can a provider fix old CIS payroll errors?
Many providers can help review historic CIS mistakes, but this is usually separate from routine monthly CIS payroll.
Old errors may involve missed verifications, wrong deduction rates, incorrect statements, late returns, or payment records that do not match invoices.
The provider may need to inspect several months of records before giving a reliable correction price.
Can CIS payroll include PAYE employees?
Yes, many providers can run PAYE payroll and CIS payroll together for construction businesses.
This is useful when the company has office staff, site employees, directors, and subcontractors being paid through different routes.
The quote should separate PAYE payroll costs from CIS return and subcontractor statement costs so you can see what is driving the fee.
Does CIS payroll include subcontractor verification?
Subcontractor verification is often included in a CIS payroll service, but it should not be assumed.
The provider needs the subcontractor's correct trading details, UTR, business type, and HMRC information before the verification can be completed.
If many subcontractors need verifying at once, the quote may include a separate setup or onboarding charge.
How do I compare CIS payroll providers?
Compare providers by looking at what is included for subcontractor verification, monthly returns, statements, PAYE overlap, and HMRC support.
Ask whether pricing is fixed, per subcontractor, per return, or based on the complexity of your records.
The best comparison is a written quote based on your real subcontractor numbers, payment frequency, and current CIS process.
Does CIS payroll include HMRC query support?
HMRC query support may be included in a managed CIS service, but it is not always part of basic processing.
Queries can involve missing returns, incorrect deductions, subcontractor verification issues, or mismatched payment records.
If you have an existing HMRC issue, mention it before requesting a quote so the provider can price the extra work properly.
Does CIS payroll include nil returns?
If no subcontractors were paid in a month, the contractor may still need to deal with the CIS return position correctly.
Some providers include nil returns as part of the monthly service, while others only act when payments are made.
Ask how nil months are handled, especially if your subcontractor payments are seasonal or project-based.
How much does CIS payroll cost for five subcontractors?
A small contractor paying around five subcontractors may pay a modest monthly fee if records are clean and the return is straightforward.
The price will depend on whether subcontractors are already verified and whether deduction statements are included.
If PAYE payroll, pensions, or director payroll are included as well, the quote will normally be higher than CIS-only support.
What records are needed for CIS payroll?
The provider usually needs subcontractor details, UTRs, verification records, invoices, labour and materials breakdowns, payment dates, and deduction rates.
If PAYE payroll is also included, employee records, hours, salaries, tax codes, pension data, and payslip details may also be needed.
Better records usually mean lower admin time, fewer corrections, and a more reliable monthly CIS return.
Do CIS deduction statements cost extra?
Some providers include deduction statements in the monthly fee, while others charge per subcontractor or per statement.
Statements are important because subcontractors need them as evidence of deductions made from their payments.
If you pay many subcontractors each month, per-statement pricing can change the total cost of the service.