Introduction
If you run a construction company, you’ve probably felt the frustration of CIS deductions eating into your cash flow. Waiting months (or even years) for HMRC refunds can cripple your working capital, delay payments to suppliers, and stall growth.
But there’s a better way.
Getting Gross Payment Status (GPS) under the Construction Industry Scheme means you’re paid in full — without 20% deductions. And that can transform your business.
Below, we’ll break down why Gross Status matters, how it works, and the six biggest reasons to apply if you haven’t already.
1️⃣ Keep Your Cash — No 20% Deductions
Under CIS, contractors normally deduct 20% tax from your invoices before paying you. That’s money you could be using to buy materials, pay wages, or take on more work.
With Gross Payment Status, you get paid the full amount. You handle your tax through your year-end return, just like any other business.
Example:
One of our clients used to have over £60,000 tied up in CIS deductions each year. After switching to Gross Status, that cash stayed in the business — allowing them to fund new vans and grow their team without borrowing.
2️⃣ Improve Cash Flow Stability
If you’re still waiting for CIS refunds, you’ll know the pain. Some refunds for the 2023/24 tax year are still being processed in late 2025. That’s nearly two years of cash sitting with HMRC instead of in your account.
With Gross Payment Status, you control your own cashflow — no more waiting for repayments or chasing HMRC.
Tip: Even if you’re a small subcontractor, improving cashflow stability can make or break your ability to scale.
3️⃣ Boost Credibility and Trust
Gross Status isn’t handed out easily. HMRC only grants it to businesses that are:
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Up to date with tax payments and returns
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Operating compliantly
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Running their accounts properly
That makes it a mark of professionalism in the industry.
Clients, contractors, and even lenders see it as a sign that you’re financially responsible and well-managed.
Insight: Some main contractors prefer to work with Gross Status subcontractors — it saves them admin and gives them confidence in your reliability.
4️⃣ Simplify Your Accounting
If you’re reconciling CIS deductions every month, you know how messy it gets.
Every payment, every deduction, and every contractor statement needs matching — and that creates hours of unnecessary admin.
With Gross Payment Status:
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There are no CIS deductions to reconcile
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Bookkeeping becomes cleaner
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Monthly accounts are easier to review and automate
It’s a simpler, smoother system that saves you time and reduces the chance of errors.
5️⃣ Better Access to Finance
Lenders love predictability.
When they see that you have Gross Payment Status, it signals:
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Stable income (no cash held back by HMRC)
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Good compliance history
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Solid financial management
That means you’re more likely to get favourable lending terms or approvals for business finance, credit, or equipment leases.
Example:
A client of ours secured a £150,000 working capital facility after gaining Gross Status — something they’d struggled to get before due to inconsistent cash flow.
6️⃣ Position Your Business for Growth
When you’re not fighting cashflow fires or juggling CIS admin, you have space to focus on what matters — building your business.
Gross Payment Status frees up both cash and capacity, which makes it easier to:
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Take on bigger projects
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Hire and train staff
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Invest in better systems
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Plan strategically
Simply put, Gross Status helps you grow with confidence.
How to Apply for Gross Payment Status
You can apply directly through HMRC, but you’ll need to meet certain criteria, including:
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Proven compliance with tax obligations
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Operating through a genuine business structure
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Evidence of sound financial management
At Thomas Emlyn Ltd, we guide construction companies through the process — from checking eligibility to managing compliance and maintaining Gross Status year-round.
If you’re unsure whether your business qualifies, we can help you prepare and apply — while tightening your accounting systems to ensure you stay compliant.
Final Thoughts
Gross Payment Status isn’t just a tax setting — it’s a strategic move that strengthens your finances, reputation, and growth potential.
If you’re tired of HMRC holding onto your money, now’s the time to make the switch.
If you’re unsure how to qualify, Thomas Emlyn Ltd can guide you through every step — helping you build stronger margins, healthier cashflow, and sustainable growth. Book a discovery call here.
