FreeAgent has launched the Construction Industry Scheme (CIS) for contractors to simplify subcontractor management and support the digital tax transition.
The new features enable FreeAgent to support important CIS contractor workflows, empowering users to track deductions, generate CIS300 returns, and create Payment & Deduction Statements for their subcontractors within a single platform.
While FreeAgent has previously assisted CIS subcontractors through its software, this optimisation ensures comprehensive support for everyone operating under the CIS framework.
Additionally, this upgrade aims to assist contractors in complying with Making Tax Digital for Income Tax, the latest phase in the government’s initiative to digitalise tax for UK businesses, set to take effect next year. Starting in April 2026, legislation will mandate that all self-employed individuals and landlords with a qualifying income exceeding GBP 50,000 annually maintain digital financial records and submit quarterly updates to HMRC regarding their tax obligations.
FreeAgent is confident that the expansion of CIS support will increase efficiency for accounting practices, allowing them to better equip their CIS contractor clients for digitalisation and prepare them for MTD.
FreeAgent representatives have indicated that with Making Tax Digital (MTD) for Income Tax set to take effect in 2026, an increasing number of contractors will be required to utilise digital software for record-keeping and submitting tax updates to HMRC. With the integration of CIS support into FreeAgent, accountants will now have the right solution for their contractor clients, assisting them in digitising their finances and ensuring full compliance with legislative requirements.
Other developments from FreeAgent
In June 2025, FreeAgent incorporated GoCardless tools to facilitate quicker payments. This optimisation strengthened the ongoing partnership between the two companies. With this integration, FreeAgent users were able to combine one-off payments via Instant Bank Pay with the recurring Direct Debit functionality, resulting in a more efficient method for managing payments across various billing situations.
