What is a CIS payment and deduction statement?

It is the record a contractor must give you within 14 days of each tax month, for example by 19 June 2026 for the month to 5 June. It shows your gross pay, materials and CIS deducted.

Under the Construction Industry Scheme (CIS), contractors take deductions from your pay and send them to HMRC. The payment and deduction statement is your proof of what was taken. You add up the year's statements to fill in your tax return, and GOV.UK says HMRC might ask for evidence of your deductions when you claim them back. Without statements, getting your money back is slower and harder.

What must be on the statement

Contractors can design their own statements, but HMRC's CIS 340 guide says each one must include:

• the contractor's name and employer tax reference
• the end date of the tax month, for example "tax month ending 5 May", or the payment date if it covers one payment
• your name and Unique Taxpayer Reference (UTR)
• a verification number, if you could not be verified and 30% was taken
• the gross amount paid to you
• the cost of materials that was taken off before the deduction was worked out
• the amount deducted

Many contractors also show VAT, but it is not required.

How the figures fit together

The contractor starts from your invoice, leaves out VAT, then takes off what you paid for materials, consumables, fuel other than for travelling, and plant you hired. The deduction is taken from what is left. Here is a worked example for one month.

If you are not VAT-registered, the money in your bank should match the net amount. If you are, add any VAT the contractor paid you, although work covered by the VAT domestic reverse charge usually carries no VAT on the payment. Materials only come off if you paid for them directly, and the contractor can ask for receipts. Without them, the contractor estimates the cost.

What this means for you

The statements are the base for your tax return. You enter the total gross pay as turnover and the total deducted as CIS deductions, and HMRC compares that with the monthly returns your contractors file. A wrong figure on a statement becomes a wrong figure on your return, and a missing statement can leave deductions unclaimed. Checking each one when it arrives takes a few minutes. Sorting it out a year later can take weeks.

If a statement shows 30% when you are registered, the contractor may not have been able to verify you. Check that the name and UTR you gave them match your CIS registration exactly. GOV.UK says to speak to the contractor if you think the figures are wrong.

Steps to check each statement

1. Check it arrives by the 19th of the month after each tax month. If it does not, ask the contractor for it.
2. Check your name and UTR are right, and that the rate is 20% if you are registered.
3. Check the gross amount matches what you invoiced for that month, excluding VAT.
4. Check the materials figure matches your receipts for materials you bought.
5. Take the deduction away from the gross amount and compare the result with the payment in your bank account.
6. File the statement with your records for the tax year, 6 April to 5 April.
7. If a statement is lost, ask the contractor for a duplicate. It should be marked "Duplicate".

If you cannot get a statement

If the contractor will not or cannot provide one, for example because they have gone out of business, GOV.UK says to write to HMRC at PT Operations, HM Revenue and Customs, BX9 1BX. Give your name, address and UTR, the contractor's name and address, their tax reference if you know it, the payment dates or tax months, and why you do not have statements. If you and the contractor disagree about a deduction, either of you can ask HMRC for a ruling.

Use the free MTD check to see whether Making Tax Digital applies to you from April 2027, and visit the trades section for more on CIS.