FreeAgent Launches CIS for Contractors to Simplify Subcontractor Management and Aid Digital Tax Transition

FreeAgent CIS Contractor tools are now live. FreeAgent, the innovative UK accounting software company, has launched a major upgrade to its award-winning platform –  introducing tools to help Construction Industry Scheme (CIS) contractors manage deductions and returns, while building on its existing support for subcontractors.

The new functionality means that FreeAgent will now support key CIS contractor workflows, allowing users to track deductions, generate CIS300 returns, and create Payment & Deduction Statements to send to their subcontractors; all in one place. 

FreeAgent has previously supported CIS subcontractors through its software, but the new functionality will mean that everyone working under the CIS umbrella will now be fully accommodated. 

The upgrade has also been introduced to help contractors comply with Making Tax Digital for Income Tax – the latest stage of the government’s ambitious plans to digitalise tax for UK businesses which comes into effect next year. From April 2026, the legislation will require all self-employed individuals and landlords earning a qualifying income of more than £50,000 per year to keep digital financial records and make quarterly updates to HMRC to report their tax affairs.  

FreeAgent believes that the expansion for CIS support will improve efficiency for accountancy practices, and enable them to be better equipped to digitalise their CIS contractor clients and prepare them for MTD. 

Roan Lavery, CEO and co-founder of FreeAgent, said: “We’ve long-supported subcontractors working under the Construction Industry Scheme, so we’re delighted to now be able to provide full CIS support for contractors and their accountants. This has been one of the most requested features that we’ve had from our contractor accountant partners, and we anticipate it will be warmly welcomed and appreciated. 

“With MTD for Income Tax coming into effect from next year, we are going to see many more contractors being required to use digital software to keep their records and make tax updates to HMRC. With CIS support now built into FreeAgent, accountants will have a complete solution for their contractor clients that will help digitise their finances and enable them to fully comply with their legislative requirements.”

By launching FreeAgent CIS Contractor tools, the platform guarantees that accountants and contractors are ready for MTD and equipped for smarter CIS compliance.