CIS nil returns since April 2026
A month with no subcontractors paid still needs action. Since 6 April 2026 a contractor must file a nil return or tell HMRC it is inactive.
The rule since 6 April 2026
A mainstream contractor who has not paid any subcontractors in a tax month must tell HMRC by the 19th of the month, either by filing a nil return or by telling HMRC of a period of inactivity. If they do neither, a penalty will be due. Source: Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340).
A mainstream contractor is a business whose business is construction and which pays subcontractors for construction work, for example a builder, a labour agency, a gangmaster or a property developer. Source: What you must do as a CIS contractor: who is covered.
The dates
A tax month runs from the 6th of one month to the 5th of the next. The return for it must reach HMRC by the 19th. For the tax month 6 May to 5 June, that is 19 June. Source: What you must do as a CIS contractor: file your monthly returns; Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340).
Your two choices
| Choice | When it suits |
|---|---|
| A nil return: a return showing your payments were 0 | A quiet month, with work expected again soon |
| An inactivity request: telling HMRC you have stopped using subcontractors for a while | No subcontractors expected for some months |
Source: What you must do as a CIS contractor: file your monthly returns.
How inactivity works
- An inactivity request lasts for up to 6 months. You can renew it at the end of the 6 months.
- You can ask for it when you file a nil return online, or by phone or post.
- If you start paying subcontractors again, file a monthly return with the payments. That ends the inactive period.
- If you stop using subcontractors for good, tell HMRC and stop filing monthly returns.
Source: What you must do as a CIS contractor: tell HMRC about changes.
Deemed contractors
A business that is a contractor only because of how much it spends on construction is not legally required to file a nil return. HMRC's guide says that if it does not tell HMRC, HMRC will issue a penalty, which is cancelled if the business then confirms it made no payments. Source: Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340).
The penalties for late returns
GOV.UK lists these penalties for a monthly return that misses the deadline:
| How late | Penalty |
|---|---|
| 1 day | £100 |
| 2 months | £200 |
| 6 months | £300 or 5% of the CIS deductions on the return, whichever is higher |
| 12 months | £300 or 5% of the CIS deductions on the return, whichever is higher |
Source: What you must do as a CIS contractor: file your monthly returns. More in CIS penalties for contractors.
Questions people ask
Do I have to file a CIS nil return?
Since 6 April 2026, yes, if you are a mainstream contractor who paid no subcontractors in the tax month: file a nil return or tell HMRC of a period of inactivity by the 19th, or a penalty will be due.
How long does a CIS inactivity request last?
Up to 6 months. You can renew it at the end of the 6 months, and filing a return with payments ends it.
Does a deemed contractor have to file a nil return?
Not by law. But if a deemed contractor does not tell HMRC, HMRC will issue a penalty, which is cancelled if it then confirms it made no payments.
Read on GOV.UK on 28 October 2026. If GOV.UK changes, we change this page.
More guides
- CIS penalties for contractorsLate returns, records, statements and the April 2026 fraud rules.
- How to check a subcontractor's CIS statusVerify with HMRC, check the company, keep a dated record.
- CIS checks for labour providersThe rules look at the money you are paid as well as the money you pay.
- CIS changes April 2026: the new fraud rulesWhat changed on 6 April 2026, and what "knew or should have known" means.
Wherever you build: CIS checks across the UK.