Contractor-focused platform, FreeAgent, introduces Construction Industry Scheme (CIS) for streamlining subcontractor management and facilitating the digital transition of tax processes.
FreeAgent Introduces New Features for Construction Industry Scheme (CIS) Contractors
In a move aimed at simplifying tax compliance for UK businesses, accounting software company FreeAgent has launched an upgrade to its platform, introducing tools specifically tailored for Construction Industry Scheme (CIS) contractors.
The upgrade comes as digitalization of tax processes becomes increasingly important for UK businesses, with the government's Making Tax Digital (MTD) initiative for Income Tax looming on the horizon. From next year, many more contractors will be required to use digital software for tax updates.
The new features enable CIS contractors to track CIS deductions, generate CIS300 returns, and create Payment & Deduction Statements directly within FreeAgent’s software. This fully supports all businesses operating under CIS, extending previous functionality which was limited to subcontractors.
The main benefits of this upgrade include:
- Simplifying payments and bookkeeping related to CIS.
- Assisting contractors to comply with MTD regulations, particularly the MTD for Income Tax requirements effective from April 2026.
- Enabling accountants to provide improved efficiency and better support to their CIS contractor clients by offering a complete digital solution for CIS and tax compliance within one platform.
- Supporting the transition to digital tax reporting ahead of legislative deadlines, reducing administrative burden and risks of non-compliance.
Roan Lavery, CEO and co-founder of FreeAgent, stated that the new CIS support was one of the most requested features from contractor accountant partners. He believes the new tools will help accountants digitize their contractor clients and comply with MTD for Income Tax.
The upgrade is part of FreeAgent's ongoing efforts to improve its software and better serve its users. It is significant as it expands FreeAgent's offerings to a wider range of users within the construction industry. The upgrade is intended to accommodate everyone working under the CIS umbrella and is expected to be warmly welcomed by contractor accountant partners.
With the Making Tax Digital for Income Tax legislation requiring self-employed individuals and landlords earning a qualifying income of more than £50,000 per year to keep digital financial records and make quarterly updates to HMRC starting from April 2026, FreeAgent's CIS upgrade integrates contractor-specific tax processes into a digital and user-friendly interface, helping both contractors and accountants stay compliant and efficient under new tax rules.
- In light of the impending Making Tax Digital (MTD) regulations for Income Tax, FreeAgent's new features for CIS contractors will aid in compliant digitalization of tax processes in the business and finance sector, particularly within the construction industry.
- With the expansion of its software to accommodate CIS contractors, FreeAgent is set to assist both contractors and accountants in efficiently meeting the tax compliance requirements under the MTD for Income Tax by offering a comprehensive digital solution.
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