CIS Payroll Finance UK 2026

Market Invoice is an independent UK invoice finance comparison site that ranks 85 active UK lenders.

CIS payroll finance is specialist UK construction finance built for businesses paying weekly subcontractor payroll under the Construction Industry Scheme while waiting 30 to 60 days for monthly Application for Payment receipts from main contractors. Providers like Pulse Cashflow, Bibby and Sonovate fund the weekly outgo against the monthly inflow with full CIS deduction handling (20 percent standard, 30 percent unregistered, 0 percent gross status), CIS300 reporting integration, and HMRC remittance management. The single most common cashflow failure mode for SME contractors employing CIS subcontractors.

Last updated: 8 May 2026.

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CIS payroll finance is specialist UK construction finance built for businesses paying weekly subcontractor payroll under the Construction Industry Scheme while waiting 30 to 60 days for monthly Application for Payment receipts from main contractors. Providers like Pulse Cashflow, Bibby and Sonovate

Summary

CIS payroll finance is specialist UK construction finance built for businesses paying weekly subcontractor payroll under the Construction Industry Scheme while waiting 30 to 60 days for monthly Application for Payment receipts from main contractors. Providers like Pulse Cashflow, Bibby and Sonovate fund the weekly outgo against the monthly inflow with full CIS deduction handling (20 percent standard, 30 percent unregistered, 0 percent gross status), CIS300 reporting integration, and HMRC remittance management. The single most common cashflow failure mode for SME contractors employing CIS subcontractors.

This Page Covers

CIS payroll finance UK: funding the gap between weekly subcontractor payments and monthly main contractor receipts, CIS handling

Not Covered Here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK providers worth knowing

ProviderFee fromMin turnoverWhy it fits
Pulse Cashflow1.0%+£100kDeepest CIS-specific expertise
Bibby Financial Services0.5%+£100kLarge subcontractor credit control
SonovateVariableNo minWeekly payroll specialism
Aldermore0.7%+£250kLarger CIS-paying construction businesses

Why CIS payroll creates a cashflow gap

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

How CIS deductions are handled in finance facilities

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

CIS300 reporting integration with finance facilities

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Gross status vs standard CIS rate impact on financing

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Best CIS payroll finance providers UK

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

OM

Oliver Mackman

Director, Market Invoice

Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.

Last reviewed: 8 May 2026

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CIS Payroll Finance UK FAQ

What is CIS payroll finance?

Specialist construction finance that funds the gap between weekly Construction Industry Scheme subcontractor payments and monthly Application for Payment receipts from main contractors. Includes CIS deduction handling, CIS300 reporting integration, and HMRC remittance management.

Why is CIS payroll a cashflow problem?

CIS subcontractors (most labour-only and labour-and-plant trades) are paid weekly. Main contractors pay AfPs monthly, 30-60 days after submission. So a subcontracting SME with 20 CIS subcontractors at £800/week each has £16k weekly outflow but only sees the corresponding £64-80k monthly AfP receipt 30-60 days later. Without CIS payroll finance, growth requires huge working capital reserves.

How do CIS deductions work in finance facilities?

Standard rate (20%) is deducted by the contractor from the subcontractor's labour element (not materials) and paid to HMRC. The finance facility advances against the gross AfP value, with CIS deductions netted off the certified payment when received. The net effect is the subcontracting SME receives gross funding, pays subcontractors net of their CIS, remits CIS deductions to HMRC monthly, and keeps the difference.

Best providers for CIS payroll finance?

Pulse Cashflow (construction specialist with deepest CIS expertise), Bibby Financial Services (large subcontractor credit control), Sonovate (weekly payroll specialism though primarily for recruitment), Aldermore (large-business construction). Specialist sourcing matters more than rate because CIS reconciliation, CIS300 timing, and gross status edge cases need provider competence.

Does CIS gross status help my financing?

Yes. Gross status (0% deduction) means the subcontractor receives the full payment from your business, with no CIS deducted. From a cashflow perspective this is harder because gross receivers need 100% of their billed amount. From a financing perspective it's neutral; the facility funds the gross AfP either way. Your business benefits from gross status because you avoid CIS300 reporting on those subcontractors.

Can I use CIS payroll finance for tax payments to HMRC?

The facility funds working capital generally, including HMRC payments (CIS deductions, PAYE, VAT). Funds aren't ringfenced. Some providers will issue a separate VAT invoice finance line for VAT payment-cycle funding (90 days quarterly). Worth asking specifically if HMRC payments are causing the cashflow pinch rather than subcontractor payroll.