Gross Payment Status for Roofing Firms
Written and reviewed by the Roofer Accountants editorial team. Last reviewed 29 July 2026.
Gross payment status lets a roofing business be paid in full, with no CIS deducted at source. Instead of losing 20% off every payment and waiting until year end to reclaim it, you keep your cash as you earn it and account for the tax through your normal returns.
For a growing roofing firm that is a serious cash-flow change. This is what it takes to qualify and when it is worth applying.
What Gross Status Changes
Without it, a contractor deducts 20% from your labour and you carry that gap until HMRC repays it. With gross payment status the rate is 0%: you are paid the full amount and settle your tax through Self Assessment or corporation tax as normal. On a busy roofing round, that is a large amount of working capital staying in your account instead of sitting with HMRC.
It does not reduce your tax. It changes the timing, from deducted-at-source-and-reclaimed to paid-in-full-and-settled-later, which is exactly what a firm buying materials and paying subcontractors up front needs.
The Three Tests
To get gross status you pass three tests. The turnover test: net construction turnover, excluding VAT and materials, of at least £30,000 for a sole trader, or £30,000 per director or partner, or £100,000 for the whole business. The compliance test: your tax returns and payments, including VAT since 6 April 2024, are up to date and on time. And the business test: you do construction work in the UK through a business bank account.
The compliance test is where most roofing firms trip, because a single late CIS return or VAT payment can block the application. Getting the filing history clean first is usually the real work.
Applying and Keeping It
You apply on form CIS302 as a sole trader or CIS305 as a company. HMRC checks the three tests and, when the record is in order, grants status, after which contractors pay you gross. HMRC then reviews the status regularly, and a run of late returns or payments can have it withdrawn.
So gross status is worth having but has to be earned and then kept, which is a good reason to have the returns and payments run on time by someone watching the deadlines. To see whether you qualify, tell us your turnover and filing history.