The CIS payment and deduction statement
If you deduct CIS from a subcontractor, you must give them a statement each tax month. Here is the deadline, what it must show, and a layout to copy.
When you must give it
If you make deductions, you must give the subcontractor a payment and deduction statement within 14 days of the end of each tax month. A tax month runs from the 6th of one month to the 5th of the next, so the statement is due by the 19th. For the tax month 6 May to 5 June, give it by 19 June. Source: What you must do as a CIS contractor: make deductions and pay subcontractors; Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340).
You can give one statement for the tax month, or one for each payment. It can be electronic if you and the subcontractor agree and it can be stored and printed. Source: Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340).
What it must show
- your name and your employer tax reference
- the end date of the tax month the payment was made in
- the subcontractor's name and Unique Taxpayer Reference (UTR)
- the verification number, where you deducted at the higher rate
- the gross amount of the payment
- the cost of the materials
- the amount deducted
Source: Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340). What comes off before the deduction is in CIS labour and materials; the number is explained in the CIS verification number.
A plain layout to copy
Our own layout, holding only the details above. Fill one in for each subcontractor you deduct from.
| Line | What to write |
|---|---|
| Contractor | Your business name |
| Employer tax reference | Your reference from HMRC |
| Tax month ending | The 5th of the month, for example 5 June |
| Subcontractor | Their name |
| Subcontractor UTR | Their Unique Taxpayer Reference |
| Verification number | Only if you deducted at 30% |
| Gross amount paid | The whole payment before the deduction |
| Cost of materials | What came off before the deduction |
| Amount deducted | The CIS deduction you paid to HMRC |
Subcontractors with gross payment status
You do not have to give a statement to a subcontractor you pay gross, but HMRC's guide calls it good practice. A copy you give again must be marked "Duplicate". Source: Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340).
If you get it wrong
Penalties of up to £3,000 can apply if you do not give statements to subcontractors you deduct from, or negligently or deliberately give incorrect ones. Source: Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340). Keep a copy with your CIS records for at least 3 years after the end of the tax year. Source: What you must do as a CIS contractor: record keeping. More in CIS penalties for contractors.
Questions people ask
When must I give a CIS payment and deduction statement?
Within 14 days of the end of each tax month. A tax month runs from the 6th of one month to the 5th of the next, so the statement is due by the 19th.
Do I give a statement to a subcontractor paid gross?
You do not have to, but HMRC's guide calls it good practice.
Can the statement be sent by email?
Yes, if you and the subcontractor agree and it can be stored and printed.
Read on GOV.UK on 28 October 2026. If GOV.UK changes, we change this page.
More guides
- CIS nil returns since April 2026What to do in a month you paid no subcontractors.
- CIS penalties for contractorsLate returns, records, statements and the April 2026 fraud rules.
- How to check a subcontractor's CIS statusVerify with HMRC, check the company, keep a dated record.
- CIS checks for labour providersThe rules look at the money you are paid as well as the money you pay.
Wherever you build: CIS checks across the UK.