What is a CIS payment and deduction statement?

A written statement a contractor must give a subcontractor showing the gross payment, the cost of materials, the amount liable to deduction and the amount deducted for a tax month. It is the subcontractor’s evidence of tax already paid.

When must a CIS statement be issued?

Within 14 days of the end of the CIS tax month the payment falls in. Tax months run from the 6th to the 5th, so a payment made on 3 May belongs to the month ending 5 May and the statement is due by 19 May.

Does a CIS statement have to be on a particular form?

No. HMRC prescribes the information rather than the layout. What matters is that the contractor and subcontractor are identified, the tax month is stated, and the gross payment, materials cost, amount liable to deduction and amount deducted all appear.

Do I issue a statement to a subcontractor with gross payment status?

No. No deduction is made from a gross-status subcontractor, so there is nothing to state. Statements are due to every subcontractor a deduction was taken from, including those paid at the higher rate.

What is the amount liable to deduction?

The labour element: the gross payment less materials, VAT, plant hire and other allowable costs such as the CITB levy and fuel. Everything excluded is still paid to the subcontractor in full; it comes off the base the percentage applies to, not off the payment.

Free template

CIS payment and deduction statement template

A contractor must give every subcontractor they deduct from a written statement of the payment and the deduction, within 14 days of the end of the tax month the payment falls in. It is the subcontractor’s evidence of tax already paid, and without it they cannot reliably set the deduction against their own liability. HMRC prescribes the information rather than the layout, so this template carries the fields that have to be there and flags the ones a statement is unusable without.

Last reviewed 10 September 2026 by Estimark. This page states periods and rates set by statute or by standard contract terms. Those move, and this date is when somebody last read the page against its source rather than the day the site was built.

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CIS Payment and Deduction Statement

Contractor

Contractor name*

Employer / accounts office reference*

Contractor UTR

Subcontractor

Subcontractor name*

Unique Taxpayer Reference (UTR)*

Verification numberRequired only where deduction is at the higher rate

Tax treatmentGross, net or higher rate

Tax period

A CIS tax month runs from the 6th of one month to the 5th of the next. The statement covers the tax month the payment was made in, which is often not the calendar month.

Tax month ending (5th of)*

Tax year

The payment

The deduction is taken on the labour element only. Everything excluded is still paid in full, coming off the base the percentage applies to rather than off the payment.

Gross amount paid, excluding VAT*

Cost of materials, excluding VAT*

Plant hire, CITB levy, fuel and other exclusions

Amount liable to deduction (the labour element)*

Rate of deduction*

Amount deducted*

Net amount paid

Issued

A statement must be given within 14 days of the end of the tax month the payment falls in.

Date issued*

Issued by

Issued in accordance with the Income Tax (Construction Industry Scheme) Regulations 2005. The subcontractor should keep this statement and use it when completing their self assessment tax return.

What must a CIS statement show?

Enough for the subcontractor to prove what was deducted and reclaim it. The contractor’s name and employer reference, the subcontractor’s name and UTR, the tax month, the gross payment, the materials cost, the amount liable to deduction and the amount deducted.

The verification number is required where the deduction was made at the higher rate.
Figures are stated excluding VAT. VAT is not part of the deduction base.
The amount liable to deduction is the labour element: the gross payment less materials, VAT, plant hire and other allowable costs.

HMRC publishes no mandatory layout. What is mandatory is the information, and a statement missing the UTR or the deduction amount is not usable by the person it is issued to.

When must it be issued?

Within 14 days of the end of the tax month the payment falls in. A CIS tax month runs from the 6th to the 5th, so a payment made on 3 May belongs to the month that ended on 5 May and the statement is due by 19 May.

One statement per subcontractor per tax month, covering every payment made to them in that month.
A statement is due to every subcontractor a deduction was made from, including those paid at the higher rate.
Nothing is due to a subcontractor with gross payment status, because no deduction was made.

Why does the subcontractor need it?

It is their evidence of tax already paid. Without it they cannot reliably set the deductions against their own liability, and a limited company cannot reclaim through its payroll scheme.

A sole trader or partnership sets the deductions against their self assessment liability.
A limited company reclaims through its monthly payroll scheme, offsetting against PAYE, National Insurance and its own CIS liability.
A subcontractor chasing missing statements at the end of the year is the usual reason contractors get asked to reissue a year’s worth at once.

Common questions

What is a CIS payment and deduction statement?: A written statement a contractor must give a subcontractor showing the gross payment, the cost of materials, the amount liable to deduction and the amount deducted for a tax month. It is the subcontractor’s evidence of tax already paid.
When must a CIS statement be issued?: Within 14 days of the end of the CIS tax month the payment falls in. Tax months run from the 6th to the 5th, so a payment made on 3 May belongs to the month ending 5 May and the statement is due by 19 May.
Does a CIS statement have to be on a particular form?: No. HMRC prescribes the information rather than the layout. What matters is that the contractor and subcontractor are identified, the tax month is stated, and the gross payment, materials cost, amount liable to deduction and amount deducted all appear.
Do I issue a statement to a subcontractor with gross payment status?: No. No deduction is made from a gross-status subcontractor, so there is nothing to state. Statements are due to every subcontractor a deduction was taken from, including those paid at the higher rate.
What is the amount liable to deduction?: The labour element: the gross payment less materials, VAT, plant hire and other allowable costs such as the CITB levy and fuel. Everything excluded is still paid to the subcontractor in full; it comes off the base the percentage applies to, not off the payment.

CIS payment and deduction statement template

CIS Payment and Deduction Statement

Contractor

Subcontractor

Tax period

The payment

Issued

What must a CIS statement show?

When must it be issued?

Why does the subcontractor need it?

Common questions

CIS compliance in Estimark

CIS deduction calculator

How CIS deductions are calculated

For sole traders

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