CIS Payroll Finance UK 2026

Market Invoice is an independent UK invoice finance comparison site that lists 83 UK invoice finance providers in its directory (76 still trading) and compares 27 of them on full published terms.

CIS payroll finance usually means using invoice finance or Application for Payment funding to pay your Construction Industry Scheme subcontractors each week while you wait to be paid. It only works for work you have already invoiced or applied for. No lender we found publishes a CIS-specific product, so ask each one how it handles CIS deductions. Under the scheme, contractors deduct 20% from registered subcontractors, 30% from unregistered ones and nothing from those with gross payment status, and pass it to HMRC (GOV.UK).

What this page covers

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 turnoverWhat it publishes
Ultimate FinanceNot publishedNot publishedFunds Applications for Payment (Construction Finance, turnover over £600k); no CIS detail published
Bibby Financial ServicesNot publishedNot publishedNames construction as a sector; no CIS detail published
Pulse FinanceNot published£1mNames construction as a sector; no CIS detail published

CIS rates: GOV.UK, What you must do as a CIS subcontractor; return deadline: GOV.UK, file your monthly returns (both read 14 October 2026). Ultimate Finance terms from its Construction Finance page, read the same day.

AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

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CIS Payroll Finance UK FAQ

What is CIS payroll finance?

It is not a separate regulated product. It usually means invoice finance or Application for Payment funding that a construction contractor uses to pay its CIS subcontractors each week while it waits to be paid by the main contractor or client. Ask each lender how it handles CIS deductions before you sign.

Why is paying CIS subcontractors a cash flow problem?

If you pay subcontractors weekly but are paid monthly, often weeks after you apply for payment, you have to fund the gap yourself. Funding your own invoices or Applications for Payment can cover that gap, but only for work you have already invoiced or applied for.

How do CIS deductions work?

Under the Construction Industry Scheme a contractor must deduct 20% from a registered subcontractor's payments, or 30% if the subcontractor is not registered, and pass it to HMRC. Subcontractors with gross payment status have nothing deducted (GOV.UK). The deductions you hold are HMRC's money, not extra working capital, so make sure your cash flow plan sets them aside.

Which providers should I ask?

None of the lenders below publishes a CIS-specific product. Ask lenders that name construction as a sector, such as Bibby Financial Services and Pulse Finance, and lenders that fund Applications for Payment, such as Ultimate Finance, how they would fund your subcontractor payroll.

Does gross payment status change the finance?

It changes what you pay out, not what a lender funds. A gross status subcontractor is paid in full with no deduction, so you need more cash on the day you pay them. You still include them on your monthly CIS return.

Can the finance be used to pay HMRC?

Money drawn from an invoice finance facility is usually yours to use as working capital, including paying HMRC. Ask the lender if any conditions apply. Monthly CIS returns are due by the 19th of the following tax month (GOV.UK).