FreeAgent Launches Construction Industry Scheme (CIS) Support

FreeAgent has introduced the Construction Industry Scheme (CIS), designed to streamline subcontractor management and support the digital tax transition for contractors.

This feature enhancement allows users to manage deductions, prepare CIS300 returns, and create Payment & Deduction Statements within FreeAgent itself, making processes more efficient and user-friendly.

Previously, FreeAgent had assisted CIS subcontractors, but this update provides comprehensive support across the board for those operating under the CIS framework.

Paving the Way for Digital Tax Compliance

The new optimization also aligns with FreeAgent’s commitment to aiding contractors as they prepare for the upcoming Making Tax Digital for Income Tax (MTD). This initiative, set to come into effect in 2026, will require self-employed individuals and landlords with annual incomes over GBP 50,000 to maintain digital records and submit quarterly tax updates.

FreeAgent believes that this CIS support will boost efficiency for accounting firms, equipping their contractor clients with the necessary tools to comply with these new regulations and transition smoothly into MTD compliance.

Supporting the Digital Tax Transition

As Making Tax Digital (MTD) for Income Tax nears its implementation in 2026, FreeAgent is confident that this update will enable contractors to prepare effectively. The integration of CIS support within FreeAgent provides a comprehensive solution, ensuring that accounting practices can support their clients in meeting the requirements laid out by HMRC.