CIS payroll services for recruitment agencies
Compliant CIS payroll for construction recruitment
Placing self-employed subcontractors in construction brings specific responsibilities around worker status, HMRC verification, deductions and payment.
Sapphire manages the CIS payroll process for recruitment agencies, helping you engage eligible subcontractors correctly, make accurate deductions and maintain the records you need to protect your agency and its supply chain.
What you get with Sapphire CIS payroll
CIS verification and onboarding
We support the verification and onboarding process before payments begin, helping make sure subcontractors are set up correctly and the appropriate CIS deduction rate is applied.
Accurate CIS deductions
We calculate and process the appropriate CIS deductions as part of every payment run, giving subcontractors clear information about what has been deducted and helping your agency maintain accurate records.
Reliable contractor payments
Your subcontractors get paid accurately and on time. We manage the payment process so your consultants and back-office team aren’t left resolving avoidable payroll issues.
Clear payment records
Contractors receive clear documentation showing their payments and CIS deductions, while your agency has the records it needs to maintain visibility across its contractor supply chain.
Flexible payroll processes
We work around the way your agency operates, with payment schedules, reporting and processes designed to support your existing workflows rather than create more administration.
Connected technology and invoicing
Sapphire’s operational technology can connect timesheets, approvals, payroll and invoicing, helping reduce manual processing across your back office.
Dedicated agency and contractor support
Your agency has a dedicated point of contact, while subcontractors can come directly to Sapphire with payment queries. Issues are dealt with at source rather than being passed back through your consultants.
CIS payroll built around construction recruitment
CIS isn’t simply another way to pay a contractor. Before a subcontractor is engaged under the Construction Industry Scheme, you need confidence that the work and engagement are appropriate for CIS and that the right processes are followed.
Sapphire combines specialist CIS knowledge, compliant payroll processes and responsive contractor support to help recruitment agencies manage construction workers with greater control.
From verification and deductions to payments and records, we manage the detail behind CIS payroll so your team doesn’t have to.
Getting CIS status right matters
Not every worker on a construction site should be paid through CIS.
The scheme applies to qualifying construction operations carried out by genuinely self-employed subcontractors. Worker status and supervision, direction and control (SDC) therefore needs to be considered alongside CIS requirements rather than treating CIS registration alone as evidence that someone is self-employed.
Where CIS is appropriate
We support eligible self-employed subcontractors working within qualifying construction activities who aren’t under SDC and manage the CIS processes behind their engagement.
Where CIS isn't appropriate
If the worker is under SDC, then the assignment isn’t suitable for CIS. Sapphire can help you understand alternative engagement and payroll options rather than trying to make the placement fit the wrong model.
That gives your agency one partner able to support different types of contractor engagement across your workforce.
Support that works for agencies and contractors
CIS payroll sits directly between your agency and the people representing it on site. Getting the experience right helps protect both.
10,000+Contractor payments processed per week
Top 5UK Umbrella/CIS market share
500+Recruitment agencies trust Sapphire
CIS compliance you can evidence
When you’re placing construction workers, being able to demonstrate how subcontractors have been engaged and paid matters. Sapphire combines established contractor payroll expertise with independently recognised compliance standards and clear records across the payment process.
12+Years supporting recruitment businesses
500+Agencies across the UK
£700m+Annual turnover
10,000+Contractor payments processed each week
100,000+Contractors supported
102+Countries supported
£1m+Paid in contractor bonuses since 2024
20%Year-on-year contractor growth
Top 5UK Umbrella/CIS market share
Sapphire is a trusted, compliance-first partner. Alex is always on hand, respectful of our preferred ways of working and quick to resolve queries and payment issues. As umbrella legislation changes, their audit-ready approach and clear, timely communication give us and our contractors real confidence.
Sophie Anderson, Associate Director, Venn Group
I have worked with Sapphire for a number of years and have consistently found their service and attention to detail in account management to be exceptional. Marcus, in particular, stands out — he resolves any issues quickly and, no matter how busy he is, always takes the time to personally speak with customers and clients. That level of dedication goes a long way. I would highly recommend Sapphire.
Jim Fleming, Director, Buildforce Solutions
I’ve worked with Sapphire for years and brought the relationship over to my own agency. They register temps quickly, keep us updated throughout and make sure they’re paid reliably each week. Any issues are resolved swiftly, allowing me to focus on placing temps with complete confidence. Jake’s guidance was also invaluable when launching my business, and the whole team consistently goes the extra mile. I see Sapphire as an extension of my accounts department and couldn’t recommend them highly enough.
Luke Lysandrou, Director, LLC Recruitment
We’ve worked with Sapphire for over a year and have found them an excellent company to deal with. The Quartz system is easy to use, but what really stands out is their proactive customer support and willingness to listen, adapt and accommodate the specific requirements of our business. Ray, Shauna and the wider team are responsive, practical and genuinely great people to work with. I’d have no hesitation in recommending them.
Steve Gearing, Managing Director, Gearing Recruitment Solutions
CIS and construction recruitment insights
Keep up with the tax, compliance and legislative developments affecting construction recruitment and contractor engagement.
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Key Indicators of Transparency
The PSL checklist: governing umbrella partners under JSL
One partner for your contractor workforce
CIS is only one way your agency may need to engage and pay contractors. Sapphire brings together different contractor services with the wider infrastructure behind your recruitment business, giving you access to the right support as your workforce and agency grow.
Global workforce
EOR, AOR and international workforce solutions to help you place talent compliantly across new markets.
Operational technology
Technology connecting timesheets, Pay & Bill, invoicing and contractor workflows to reduce back-office administration.
Accounting & intelligence
Recruitment-specialist accounting, real-time financial intelligence and benchmarking to support better commercial decisions.
Trusted by agencies
Trusted by 500+ recruitment agencies, with eight years of FCSA accreditation and an Excellent Trustpilot rating from 5,000+ reviews.
Frequently asked questions
What is CIS payroll?
CIS payroll is a specialist payroll process for contractors and subcontractors working in the UK construction sector under HMRC’s Construction Industry Scheme (CIS). Under CIS, contractors deduct a holding tax at source from subcontractor payments, at either a standard or higher rate depending on the subcontractor’s verification status, and pass those deductions directly to HMRC. For subcontractors, this counts as advance payment towards their tax and National Insurance bill.
How does CIS work for recruitment agencies?
If your agency places workers in construction, CIS may be a relevant engagement model for self-employed subcontractors who qualify under the scheme.
Under CIS, the payroll provider acts as the contractor for HMRC purposes and takes on responsibility for verifying subcontractors, deducting the correct tax rate and making accurate payments to HMRC. For agencies, this means choosing a payroll partner who understands how CIS sits alongside other engagement models, including umbrella and PAYE, so you can offer the right structure for each placement.
Which contractors can use CIS?
CIS applies to self-employed subcontractors working in construction or construction-related activities in the UK and who aren’t under the SDC of the end client or anyone in the supply chain. Eligible work typically includes building, demolition, installation, repair and civil engineering.
Not every contractor working on a construction site qualifies for CIS. Eligibility depends on the nature of the work, the individual’s employment status and their registration with HMRC. A compliant payroll partner can help you identify which engagement model is appropriate for each worker before placement.
What are a recruitment agency's responsibilities under CIS?
Your responsibilities will depend on how your agency sits in the supply chain and which entity acts as the CIS contractor for HMRC purposes. In most cases, agencies using a specialist CIS payroll provider will transfer day-to-day obligations, including subcontractor verification and deduction management, to that provider.
What you retain is responsibility for choosing a payroll partner who operates compliantly, keeps accurate records and can evidence correct deductions if HMRC ever asks. With Joint and Several Liability rules in effect from April 2026, the compliance credentials of your payroll partners carry direct financial consequences for your business.
How can agencies manage CIS compliance effectively?
The most effective way to manage CIS compliance is to work with an accredited payroll partner who has demonstrable expertise in the scheme and a track record of accurate, transparent payments.
Key steps include:
- Verifying that your payroll partner holds recognised accreditations such as FCSA membership or SafeRec approval
- Confirming they have a clear process for subcontractor verification with HMRC before any payments are made
- Ensuring they have a stringent SDC and employment status test process in place
- Ensuring subcontractors receive detailed payslips that clearly show deductions made under CIS
- Reviewing your Preferred Supplier List regularly to confirm partners continue to meet your compliance standards
Sapphire holds eight consecutive years of FCSA accreditation and secured SafeRec accreditation in 2025. Its dedicated Compliance Director supports agencies through the practical and legislative aspects of compliant CIS engagement.
Why choose Sapphire for CIS payroll?
Sapphire’s CIS service is built on the same compliance-first foundation as its wider contractor services. For agencies placing talent in construction, that means working with a partner that has been independently accredited for eight consecutive years, has SafeRec real-time payroll auditing in place and holds APSCo Trusted Partner status.
Beyond accreditation, Sapphire supports agencies with practical guidance on worker classification, engagement structure and legislative change, including the upcoming Joint and Several Liability rules. You get a partner who understands both the commercial and compliance sides of construction recruitment, not just the payroll mechanics.
How do I find out if Sapphire's CIS service is right for my agency?
The quickest way is to speak directly with the Sapphire team. They’ll ask about your current contractor mix, the sectors you operate in and how you’re currently managing CIS placements, then give you a clear view of where Sapphire can help.
There’s no obligation, and you’ll come away with a better understanding of your compliance position regardless of what you decide.
