Supporting a Client Through a CIS Compliance Enquiry

Our client, a construction company operating with a regular subcontractor base, was selected by HMRC for a routine Construction Industry Scheme (CIS) compliance review.

The review focused on two main areas:

Whether the company had robust internal processes for verifying subcontractors and applying the correct CIS deduction rates
Whether the company was correctly assessing the employment status of its workers

For many businesses, CIS reviews can feel daunting, even when processes are compliant.

Challenge

The director and bookkeeper were understandably nervous about the level of scrutiny and the possibility of HMRC misinterpreting their procedures.

Moreover, the initial questions from HMRC were broad and open-ended, an approach often used to uncover inconsistencies or gaps in a company’s processes.

This created a need for clear guidance, technical support, and strategic preparation to ensure the client provided complete and accurate responses without exposing themselves to unnecessary risk.

Our Approach

We provided hands-on support throughout the enquiry:

Accompanied the director and bookkeeper on calls with HMRC to give them confidence and ensure answers were framed correctly.
Interpreted HMRC’s lines of questioning—explaining what HMRC were really looking for based on our previous experience handling similar enquiries.
Coached the bookkeeper on how to articulate the company’s CIS processes in a way that addressed HMRC’s underlying concerns, not just the surface-level questions.
Prepared proactive explanations and supporting evidence, anticipating follow-up questions before they were asked.
Ensured all responses were full, accurate, and consistent, reducing the risk of HMRC expanding the scope of the enquiry.

Solution

By combining technical expertise with practical coaching, we helped the client present their procedures in the best possible light.

Our ability to anticipate HMRC’s “next move” allowed us to provide comprehensive explanations and documentation upfront, which helped limit the enquiry’s duration and depth.

Results

HMRC were satisfied that the client’s CIS verification and deduction processes were sound.
No amendments, penalties, or further investigations were raised.
The director and bookkeeper felt supported throughout the process, with significantly reduced anxiety.
The enquiry was closed efficiently and without escalation.

Outcome

This case demonstrates how expert guidance and proactive preparation can turn a potentially stressful HMRC enquiry into a smooth, controlled process.

By interpreting HMRC’s intentions and preparing strategically, we ensured the client achieved a favourable and straightforward outcome.

Due to this being a HMRC investigation in progress that we were actively supporting and advising on, our costs were also covered by the clients fee protection insurance.