What is CIS deregistration?
The Construction Industry Scheme requires contractors to deduct money from subcontractor payments and pass it to HMRC as advance payments towards the subcontractor's tax and National Insurance. When your company ceases trading, you must formally notify HMRC that you are no longer operating as a CIS contractor or subcontractor. There is no single 'deregistration form' — the process involves notifying HMRC by phone or online and filing all outstanding CIS monthly returns.
When CIS deregistration is needed
You should contact HMRC when your company has stopped using subcontractors completely. This applies whether the company is being wound down, struck off, or simply ceasing construction work.
If you have only paused subcontractor work temporarily, you do not usually need to deregister straight away. HMRC allows an inactivity request if you have temporarily stopped using subcontractors and do not expect to make payments in the foreseeable future; this can last up to 6 months and may be renewed.
What HMRC expects
When a company stops operating as a CIS contractor, HMRC expects two things:
- You tell HMRC that the company has stopped using subcontractors.
- You stop filing monthly CIS reports after the cessation date.
If there are any outstanding CIS monthly returns for periods before the cessation date, those returns still need to be filed. In other words, stopping the scheme does not remove the obligation to submit any return that was already due.
Step-by-step process
1. File any outstanding CIS returns
Before you notify HMRC about cessation, check that every CIS return due up to the last date you used subcontractors has been filed. This is especially important if the company is about to be dissolved, because late or missing tax filings can delay the closure process.
If you used subcontractors in the final month of trading, include that month’s CIS return in the normal way. Keep records of subcontractor payments, deductions, and verification details for your files.
2. Check for CIS liabilities or repayments
If your company deducted CIS from subcontractors, those amounts must have been paid over to HMRC through the normal CIS process. If the company is also due a CIS repayment as a subcontractor, it is best to claim it before dissolution, because any refund paid after the company is struck off can pass to the Crown as bona vacantia.
That point matters for closing companies: once the company no longer legally exists, recovering money becomes much more complicated.
3. Tell HMRC that CIS has stopped
Once the company has stopped using subcontractors, tell HMRC that CIS activity has ceased. HMRC’s contact number for CIS general enquiries is 0300 200 3210, and the service is open Monday to Friday, 8am to 6pm.
HMRC also says you can report some changes by phone, post, or through the CIS online service, depending on the situation. Keep a record of the date you notified HMRC and any reference number given.
4. Deal with company closure
If the company is being struck off, make sure the DS01 is filed only after you have dealt with assets and outstanding obligations. Companies House says the form must be signed by a majority of directors, costs £18, and the company’s remaining assets — including HMRC repayments — can pass to the Crown if left behind.
That means CIS should be one part of the wider closure checklist, not a standalone task.
Temporary pause vs full stop
There is an important difference between pausing CIS and ending it completely. If your company has merely stopped using subcontractors for a while, HMRC can record an inactivity request instead of a full cessation.
If your company will not use subcontractors again, you should tell HMRC that CIS has stopped and end monthly reporting for that contractor activity. If work restarts later, you must begin filing CIS returns again from the point subcontractor payments resume.
CIS and strike-off timing
For a company closure, it is usually safest to resolve CIS first, then submit DS01. That means:
- filing all outstanding CIS returns,
- paying any CIS liabilities,
- claiming any repayment due, and
- notifying HMRC that subcontractor work has stopped.
This reduces the risk of HMRC raising an objection to the strike-off because of unresolved tax matters.
Common mistakes
The most common errors are simple but costly:
- Assuming there is a special CIS deregistration form.
- Stopping payments to subcontractors but forgetting the final return.
- Leaving a CIS repayment unclaimed until after dissolution.
- Filing DS01 before HMRC has been told about cessation.
For a closing company, the safest approach is to treat CIS as part of the final tax clearance process, not as an isolated admin task.
Checklist before closing
Use this checklist before you file DS01:
- Submit all CIS returns up to the final subcontractor payment date.
- Pay any CIS deducted from subcontractors to HMRC.
- Ask HMRC to record that CIS activity has stopped.
- Claim any CIS repayment before the company is struck off.
- Keep evidence of all calls, filings, and payment confirmations.