CIS Offset (Limited Company)

Short Definition: Using CIS deductions to reduce company tax liabilities.

Long Definition: Limited companies can use CIS deductions suffered during the year to offset against PAYE and National Insurance liabilities. This is known as a CIS offset. Instead of waiting for a refund, companies can reduce their monthly PAYE bill, improving cash flow. Proper record keeping and accurate reporting are essential to ensure offsets are applied correctly.