For UK building and construction
Work logged on WhatsApp, ChatGPT, Claude, or our app. Petl Pay raises the self-bills, works out CIS, and pays everyone bank-to-bank when you say so.
Your subbies log what they did in their own words, on the Petl Pay app on desktop or mobile, or in WhatsApp, ChatGPT, or Claude. A site manager can log it for them.
Petl Pay turns it into a claim for you to check. No timesheets to chase.
Labour and materials split, the right rate applied, 20, 30, or 0 percent, and every deduction tracked against the subbie. What you owe HMRC each month sits on one line.
Calculated and tracked, not filed. Your accountant picks up the return with the records already straight.
| Date | Party | Type | Amount |
|---|---|---|---|
| 18 Sept | Greg Johnson | SubbieCIS 20% | −£2,430.00 |
| 18 Sept | Milton Masters | SubbieCIS 20% | −£1,856.00 |
| 11 Sept | Greg Johnson | SubbieCIS 20% | −£2,112.00 |
Approve a subbie's self-bill and pay it straight from your own bank, on site, from your phone. Instant open banking payments, one at a time, when you say so.
Petl Pay never holds your funds, and nothing leaves without your sign-off.
Greg Johnson will be paid by bank transfer from your account.
Every completed pay run pushes to Xero, with CIS deductions on the right lines. Need a human for the monthly return or MTD? Add an accountant in the loop and our partner accountants do the filing from these records.
Illustrative figures. CIS is calculated and tracked, not filed. Always check your position at hmrc.gov.uk.
CIS, explained
Under CIS, a contractor takes a deduction from the labour part of a subcontractor's payment and passes it to HMRC. The rate depends on the subbie's status, and it applies to labour, not materials, plant, or hire.
Petl Pay applies the right rate for every subbie, keeps labour and materials apart on each self-bill, produces a payment and deduction statement, and tracks it all for the monthly return. Petl Pay calculates and tracks CIS. It doesn't file it. Your accountant does, or ours does through the accountant in the loop.
Rules and rates change. Always check your position at hmrc.gov.uk before you rely on any figure.
Why now
Verification, monitoring, and clean digital records are going from nice to have to expected. Dates are current at the time of writing, so confirm them on gov.uk.
Sole traders above the first threshold now keep digital records and send quarterly updates. Many CIS subbies are sole traders, so this lands on them directly.
HMRC can act faster where a payment is linked to fraud, including removing gross payment status. Being able to show that you verify and monitor your subbies is now the point.
Agencies, and in some cases end clients, can be liable where an umbrella fails. Many are moving to direct engagement, which in construction means CIS.
The first quarterly update falls due for the sole traders in scope, and for the accountants who look after them.
Checks are expected to extend to self-employed subcontractors, with penalties per worker. Confirm the final position on gov.uk before you rely on it.
A further group of sole traders comes into scope, widening the number of subbies keeping quarterly digital records.
We're pursuing HMRC recognition so Petl Pay can do more of the compliance heavy lifting over time. Today, Petl Pay calculates and tracks CIS, keeps labour and materials apart, and produces payment and deduction statements ready for your return. Filing stays with you, your accountant, or our partner accountants. Always check your position at hmrc.gov.uk.
Petl Pay is the middleware that connects your project finance, internal tools, and the AI your team and clients already use, so one client payment flows out to every contributor.
