CIS Subcontractor Statements: What Contractors Must Provide

Why Subcontractor Statements Matter

Under the Construction Industry Scheme (CIS), contractors must give subcontractors a monthly statement confirming payments made and tax deducted.

This isn’t just paperwork — subcontractors rely on these statements to reclaim CIS tax through Self Assessment or offset it against their own liabilities. If contractors issue statements late, incorrectly, or not at all, it damages trust, creates disputes, and risks HMRC penalties.

This article explains CIS statement rules, deadlines, and common pitfalls, while showing how Wexley ensures contractors stay fully compliant.

What a CIS Statement Must Include

Each subcontractor payment must be backed by a clear monthly statement. HMRC requires:

• Contractor’s name and Unique Taxpayer Reference (UTR).

• Subcontractor’s name, UTR, and verification number.

• Gross amount paid (excluding VAT).

• Amount of CIS tax deducted (20% or 30%).

• Date of payment and period covered.

👉 Contractors can issue statements electronically or on paper — but accuracy is non-negotiable.

🔗 HMRC: CIS Guide – Statements for Subcontractors

Deadlines & Frequency

• Statements must be given to subcontractors by the 19th of the month following the payment month (the same as the CIS return deadline).

• They must be issued every month, even if only one payment was made.

• Nil statements are not required if no payments were made.

Why Accurate Statements Are Critical

Subcontractors use CIS statements to:

• Reclaim overpaid CIS tax through Self Assessment.

• Prove tax deducted when applying for Gross Payment Status.

• Keep financial records up to HMRC standards.

If statements are missing or incorrect:

• Subcontractors cannot prove CIS tax was deducted.

• HMRC may hold contractors responsible for errors.

• Disputes between contractors and subcontractors often arise.

Penalties & Risks for Contractors

While HMRC doesn’t currently levy a “set” penalty for missing statements, the risks are real:

• HMRC can investigate contractors suspected of non-compliance.

• Subcontractor disputes can delay projects and damage reputation.

• Incorrect statements may lead to backdated tax adjustments or fines.

In practice, failing to provide accurate statements can quickly spiral into bigger compliance and cash flow issues.

Common Mistakes Contractors Make

• Forgetting to issue statements by the 19th deadline.

• Using the wrong CIS deduction rate (20% vs 30%).

• Misreporting materials or VAT.

• Failing to include subcontractor verification details.

How Wexley Ensures Contractors Stay Compliant

At Wexley & Associates, we:

• Prepare and issue CIS subcontractor statements on time, every month.

• Guarantee statements match CIS returns — avoiding discrepancies.

• Check deduction accuracy so subcontractors can reclaim correctly.

• Handle disputes and HMRC queries on behalf of our clients.

With our support, contractors stay compliant, subcontractors stay satisfied, and projects stay on track.

Call to Action: Protect Your Reputation & Stay CIS-Compliant

Subcontractor statements are more than admin — they protect your business relationships and prove compliance to HMRC. Don’t risk delays, disputes, or hidden tax problems.

👉 Contact Wexley & Associates today for expert CIS management that keeps your statements accurate, timely, and stress-free.

References

• HMRC: CIS 340 – Construction Industry Scheme: Guide for Contractors and Subcontractors

• HMRC: CIS – Paying Subcontractors

• Related Wex Insider article: CIS Monthly Returns & Payment Compliance: Deadlines Contractors Can’t Miss