Engagement Letter – CIS Returns

An engagement letter for running a contractor’s Construction Industry Scheme compliance: verification, monthly CIS300 returns, payment and deduction statements, nil returns and gross payment status.

Editable Word document
14
10pages
Guidance notes included
aml consultancy solutions

Accountancy practice – client documents

Engagement Letter – CIS Returns

About this document

What it’s for

A covering letter, Schedule 1 (CIS services, the contractor’s legal duties, gross payment status and penalties), Schedule 2 (fees and monthly timetable) and a confirmation of acceptance for contractors – including “deemed” contractors – in the Construction Industry Scheme.

When to use it

  • A builder, developer or other business pays subcontractors for construction work
  • A business becomes a deemed contractor because of its construction spend
  • A subcontractor client also wants help with gross payment status or reclaiming deductions

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

  1. Contractor details and scope
  2. Verifying subcontractors
  3. Employment status
  4. Monthly CIS returns
  5. Payment and deduction statements
  6. Paying HMRC
  7. Gross payment status
  8. VAT and the domestic reverse charge
  9. Your responsibilities
  10. Our responsibilities
  11. Services not included
  12. Authority to act
  13. Professional rules and standards
  14. Identity checks and money laundering
  15. Confidentiality and data protection
  16. Fees and payment
  17. Our liability to you
  18. Changes in the law and to this engagement
  19. Ending the engagement
  20. How our agreement fits together

Also included

  • Fees
  • Timetable

How to complete it

  • Fill in the contractor details table and tick the services agreed
  • Choose who verifies subcontractors and who issues statements
  • Set a monthly cut-off for payment information in Schedule 2
  • Use your separate payroll or VAT letters for those services

Key points to check

  • The April 2026 CIS anti-fraud changes to gross payment status
  • Penalty amounts and gross payment status turnover limits (placeholders)

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Accountancy practice – client documents

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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