How CIS deductions work

The contractor verifies the subcontractor, identifies the payment and applies the relevant deduction rules. Materials and other amounts may need to be separated from labour.

Payment statements

Give subcontractors the required payment and deduction information. Keep a clear calculation for gross payment, materials, deductions and net payment.

Monthly CIS returns

Contractors submit the required monthly return and pay deductions to HMRC by the applicable deadline. Keep evidence of submissions and payments.

Official sources.

Check the current guidance before you rely on a rate, threshold, deadline or relief.

Need help with CIS deductions?

Swift Accountancy can help organise CIS payment records, statements and monthly reporting.

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