CIS Subcontractor Rights: What You're Entitled To

Know Your Rights Under CIS

As a CIS subcontractor, the scheme places obligations on you — but it also gives you rights. Understanding these rights helps you ensure you are treated fairly by contractors and HMRC, and that you receive every penny you are owed.

Right to a Payment and Deduction Statement

Every time a contractor makes a CIS deduction from your payment, they must provide you with a written statement within 14 days of the end of the CIS tax month. This statement must show:

• The contractor's details (name, address, employer tax reference)
• Your name and UTR
• The tax month covered
• The gross amount of the payment
• The cost of materials (if applicable)
• The deduction amount

If a contractor does not provide a statement, you should request one in writing. You need these statements to claim CIS deductions on your Self Assessment. Without them, proving your deductions to HMRC becomes difficult.

If a contractor consistently refuses to provide statements, you can report them to HMRC.

Right to the Correct Deduction Rate

You have the right to be deducted at the rate that matches your CIS registration:

• 0% if you have Gross Payment Status
• 20% if you are registered for CIS
• 30% only if you are not registered or cannot be verified

If a contractor is deducting at a higher rate than you believe is correct, check:

• That you are properly registered with HMRC
• That the contractor has verified you (and verified correctly)
• That your details with HMRC match what the contractor is using

If the contractor is applying the wrong rate, contact them and ask them to re-verify you with HMRC. If the issue is on HMRC's side, contact them to resolve it.

Right to Have Materials Excluded

CIS deductions apply only to the labour element of your payment. Materials you supply are excluded from the deduction calculation. You have the right to have your materials properly excluded, provided you itemise them separately on your invoice.

If a contractor is deducting CIS from the full invoice amount (including materials), point out the error and provide a clear breakdown of labour and materials. If necessary, provide receipts as evidence of your materials costs.

Right to Reclaim Overpaid Tax

CIS deductions are advance payments towards your income tax and National Insurance. If the total deductions exceed your actual tax liability (which is common, especially after expenses), you have the right to a refund.

You claim this refund through your Self Assessment tax return. HMRC will calculate your actual tax, offset the CIS deductions, and issue a refund for any overpayment.

For the 2025/26 tax year, you can file your return from 6 April 2026 onwards. The sooner you file, the sooner you receive your refund.

Right to Register for CIS

You have the right to register as a CIS subcontractor at any time. HMRC cannot refuse a valid registration. Once registered, your deduction rate drops from 30% to 20%.

You also have the right to apply for Gross Payment Status if you meet the qualifying criteria (business, turnover, and compliance tests).

Right to Appeal

If HMRC makes a decision you disagree with — such as refusing Gross Payment Status, withdrawing GPS, or imposing a penalty — you have the right to appeal. Appeals must be made within 30 days of the decision.

The appeal process is:

1. Ask HMRC to review the decision (mandatory reconsideration)
2. If still unhappy, appeal to the First-tier Tax Tribunal
3. Further appeals to the Upper Tribunal on points of law

Right to Be Treated as Self-Employed

CIS is a tax collection mechanism — it does not determine your employment status. Being paid under CIS does not make you an employee. You have the right to be treated as self-employed if your working arrangements genuinely reflect self-employment.

If a contractor tries to control how, when, and where you work; prevents you from substituting another worker; or requires you to work exclusively for them — these may be signs of employment rather than self-employment. But CIS registration alone does not change your status.

Right to Information from HMRC

You can request information about your CIS record from HMRC, including:

• Confirmation of your registration status
• Details of deductions reported by contractors on your behalf
• Your current deduction rate

This information is available through your HMRC online account or by contacting the CIS helpline.

Protecting Your Rights

Keep All Statements

Statements are your primary evidence. Keep them securely — digitally is best.

Check Your HMRC Record

Regularly log in to your HMRC account and check that the CIS deductions on record match your statements. Discrepancies should be reported early.

Invoice Clearly

Always separate labour and materials on your invoices. This protects your right to have materials excluded from deductions.

File on Time

Filing your Self Assessment on time ensures your refund is processed promptly. Late filing delays refunds and incurs penalties.

How Accounted Protects Your CIS Rights

Accounted ensures you get everything you are entitled to:

• Deduction tracking — every deduction is recorded and matched to your bank transactions
• Statement storage — keep all statements digitally, safe and accessible
• Refund calculation — see your estimated refund in real time
• Deadline management — never miss a filing deadline

View our pricing and choose the plan that works for you.

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You have worked hard for your money — make sure you get all of it back. Sign up for Accounted and let Penny protect your CIS rights.