CIS Payment and Deduction Statement Explained

What Is a CIS Statement?

A CIS payment and deduction statement is a document that contractors must issue to subcontractors whenever they make a CIS deduction. It is your proof that tax was deducted and paid to HMRC on your behalf.

Think of it like a payslip for subcontractors — it shows what you earned, what was deducted, and what you received.

What the Statement Must Show

Every CIS statement must include:

• Contractor's name, address, and employer tax reference
• Your name and UTR (Unique Taxpayer Reference)
• The tax month the statement covers (6th to 5th)
• Gross payment amount — the total before deductions
• Cost of materials — if you supplied materials
• CIS deduction amount — the tax deducted
• HMRC verification number

When Should You Receive One?

Contractors must issue statements within 14 days of the end of the CIS tax month. So for work paid between 6 March and 5 April, you should receive your statement by 19 April.

Why Statements Matter

For Your Self Assessment

When you file your tax return, you declare total CIS deductions suffered during the year. Your statements are the evidence for this figure. Without them, HMRC may not accept your deduction claims.

For Refund Claims

If your CIS deductions exceed your tax liability (which is common), you need statements to support your refund claim. HMRC can cross-reference your claimed deductions with the returns filed by your contractors.

For HMRC Enquiries

If HMRC opens an enquiry into your tax affairs, CIS statements are key documents they will want to see. Having a complete set shows you are organised and compliant.

What to Do If You Do Not Receive a Statement

1. Ask the contractor — they are legally required to provide one
2. Put the request in writing — email creates a paper trail
3. Report to HMRC — if the contractor consistently refuses, HMRC can investigate
4. Check your HMRC account — deductions reported by contractors may be visible online

Keep Every Statement

Store your statements securely for at least six years. Digital storage is ideal — scan paper statements and save them alongside your other financial records.

With Accounted, you can upload and store CIS statements digitally. Penny links them to the relevant transactions in your records.

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Every statement is money you can claim back. Sign up for Accounted and keep all your CIS statements safe with Penny.