CIS payment and deduction statements
If you take CIS off a subbie's pay, you must give them a statement of what you paid and what you deducted, within 14 days of the end of the tax month. That's by the 19th, the same day your CIS300 is due.
What a CIS payment and deduction statement must show
Each statement must show:
- your name and your employer's reference, the one on your CIS300
- the tax month the payments are for, or the date of the payment if you give one statement per payment
- your subbie's name and Unique Taxpayer Reference (UTR)
- the total you paid them, excluding VAT
- how much of that was your subbie's direct cost of materials
- the total CIS you deducted
- if you paid them at 30% because HMRC couldn't match them, the verification number HMRC gave you, with any letters on the end
HMRC doesn't supply a form, so you make your own. You can add other details, such as the VAT your subbie charged.
When CIS statements are due
A tax month runs from the 6th of one month to the 5th of the next. Statements for the payments in it are due within 14 days of the 5th, so by the 19th.
You can give one statement a month covering every payment to that subbie, or one statement for each payment. The return and the payment to HMRC have their own dates, set out in the CIS deadlines guide.
Which subcontractors need a statement
Every subbie you deducted CIS from, at 20% or 30%. For subbies you paid gross, with nothing deducted, a statement is good practice but not required.
If a subbie asks you to pay someone else, such as a factoring company, the statement still goes in the subbie's own name, to the subbie.
Sending CIS statements by email
You can send statements by email or another electronic method if:
- you've told your subbie you intend to send them electronically
- your subbie has agreed, and hasn't withdrawn that agreement
- the statement comes in a format they can save and print, such as a PDF
Statements in 0s and 1s go out as PDFs by email, every subbie at once.
Lost CIS statements and duplicates
If a statement goes missing, your subbie can ask you for another copy. Mark the copy "Duplicate".
Worked example: a CIS statement at 20%
Sam is paid £5,450.36 in the tax month ending 5 May 2026, including £584.72 he spent on materials. He's verified at the standard 20% rate. His statement, due by 19 May 2026, reads:
| Contractor | Example Builders Ltd |
|---|---|
| Employer's reference | 123/AB45678 |
| Tax month ending | 5 May 2026 |
| Subcontractor | Sam Example |
| Unique Taxpayer Reference (UTR) | 98765 43210 |
| Gross amount paid, excluding VAT (A) | £5,450.36 |
| Less cost of materials | £584.72 |
| Amount liable to deduction at 20% | £4,865.64 |
| Amount deducted (B) | £973.12 |
| Amount payable (A minus B) | £4,477.24 |
Materials come off before the deduction is worked out, and VAT is left out of every figure. 20% of £4,865.64 is £973.12, rounded down to the penny.
The same statement at the 30% higher rate
If HMRC couldn't match Sam, you deduct 30% and add the verification number HMRC gave you when you verified him:
| Contractor | Example Builders Ltd |
|---|---|
| Employer's reference | 123/AB45678 |
| Tax month ending | 5 May 2026 |
| Subcontractor | Sam Example |
| Unique Taxpayer Reference (UTR) | 98765 43210 |
| Gross amount paid, excluding VAT (A) | £5,450.36 |
| Less cost of materials | £584.72 |
| Amount liable to deduction at 30% | £4,865.64 |
| Amount deducted (B) | £1,459.69 |
| Amount payable (A minus B) | £3,990.67 |
| Verification number | V1234567890A |
If you don't give CIS statements
If you don't give a subbie their statement, you can be fined up to £300, then up to £60 for each day it is still missing after that. Carelessly or deliberately giving a statement with wrong figures can cost up to £3,000. If you are paid gross yourself, HMRC may also take regularly missed statements into account when it reviews your gross payment status.