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.
Step 1 — File all outstanding CIS monthly returns
Before contacting HMRC, ensure that all CIS300 monthly returns have been submitted for every month your company operated as a contractor. Each return must list the subcontractors you paid, the amounts deducted, and the verification numbers. Filing late returns will attract a penalty of £100 per return per month, so do not delay. Log in to your HMRC online account (Government Gateway) to check which returns are outstanding.
Step 2 — Settle any deductions owed
Once all returns are filed, check your CIS account balance. If your company deducted money from subcontractors but has not yet paid it to HMRC, this liability must be settled before dissolution. Conversely, if your company suffered excess CIS deductions as a subcontractor, you may be entitled to a repayment — claim this before the company is dissolved, as any refund issued after dissolution will become bona vacantia (Crown property).
Step 3 — Notify HMRC of cessation
Call the CIS helpline (0300 200 3210) or notify HMRC through your online tax account to confirm that your company has ceased operating under the scheme. Confirm the date trading ceased. HMRC will update your CIS record and should not raise further penalty notices after this date. Keep a written record of the call, including the date, time, and reference number provided.
Step 4 — Timing with your DS01 application
HMRC has the right to object to a Companies House strike-off application if there are outstanding tax obligations. It is best practice to resolve all CIS matters — filed returns, settled liabilities, and cessation notification — at least two to four weeks before submitting your DS01. This gives HMRC time to update their records and reduces the risk of an objection halting your dissolution.