FreeAgent now supports CIS for Contractors

Forklift lifting a bag with 'Construction Industry Scheme' written on the sides

You asked, we listened! FreeAgent has long supported Construction Industry Scheme (CIS) subcontractors - and now we’re excited to announce our support for CIS contractors as well. Your clients can manage deductions, prepare CIS300 returns, and create Payment and Deduction Statements, all in one place. No more fiddly spreadsheets. Just smooth, simple CIS bookkeeping - for both subcontractors and contractors. 

Save time. Stay compliant.

We’ve built a CIS experience that helps your clients stay organised, save time and remain compliant with HMRC’s CIS contractor obligations. Here’s what they can do:

  • Set up ‘Contacts’ as CIS subcontractors and enter key details such as the subcontractor verification number.
  • Categorise CIS costs (labour, materials, travel - you name it) using brand new nominal accounts.
  • Automatically calculate CIS deductions on bills and apply the right rates for each subcontractor.
  • Prepare monthly CIS300 returns with payment tracking built in. 
  • Send and export Payment & Deduction Statements directly from FreeAgent.
  • Post liabilities straight to their chart of accounts and reconcile payments with ease.
  • See all relevant CIS info at a glance - from the contact record to the bill detail screen. 

The countdown to MTD for Income Tax

From April 2026, thousands of CIS contractors will be brought into the scope of Making Tax Digital (MTD) for Income Tax. Practices should prepare well ahead of time to digitalise relevant clients. 

FreeAgent is here to help you do that - our CIS tools will help you and your clients get ready now, so when MTD kicks in, you’ll be compliant and ready to support them.  

Want to find out more?Your Account Manager is always happy to answer any questions - or you cancheck out our Knowledge Base for a closer look at the functionality.