CIS payment and deduction statements: what to include, when they are due, and how to work out the deduction

In brief

• A CIS payment and deduction statement must show the contractor’s name and employer reference, the tax month end date, the subcontractor’s name and UTR, the verification number if applicable, the gross payment, the materials cost that reduced the deduction base, and the deduction.
• A CIS subcontractor statement is due within 14 days of the end of the tax month. For the tax month 6 May to 5 June, that means by 19 June.
• To work out CIS deduction, start with the gross invoice, subtract VAT, materials and plant paid by the subcontractor, then apply 20% for registered, 30% for unregistered, or 0% for gross status.
• For a CIS statement Google Sheets route there are two options at the end of this page: a one-off spreadsheet template, or a Sheets add-on. Neither exists yet.

What a CIS payment and deduction statement must show

A statement records the tax month and the subcontractor it covers. The desk check records this list of what it must show, taken from HMRC’s pages:

• the contractor’s name and employer reference;
• the tax month end date;
• the subcontractor’s name and UTR;
• the verification number, if applicable;
• the gross payment;
• the materials cost that reduced the deduction base;
• the deduction.

Source: HMRC: Construction Industry Scheme — a guide for contractors and subcontractors (CIS340). Updated 6 April 2026. Read 2 November 2026.

When a CIS subcontractor statement is due: 14 days

HMRC’s make-deductions page puts the deadline at 14 days after the end of the tax month. The same page gives the example of the tax month 6 May to 5 June, which ended on 5 June and was due by 19 June.

Source: GOV.UK: what you must do as a CIS contractor — make deductions and pay subcontractors. Read 2 November 2026.

How to work out CIS deduction

HMRC’s pages give the deduction sum in one sentence. The quote below is copied exactly from the desk check, which recorded it from those pages:

GOV.UK's CIS pages, on working out the deduction, as recorded:

start with gross invoice, subtract VAT, materials and plant paid by subcontractor, apply 20% registered / 30% unregistered / 0% gross status

Source: GOV.UK: what you must do as a CIS contractor — make deductions and pay subcontractors. Read 2 November 2026.

The result is the amount deducted. If you are checking a deduction by hand, take the gross invoice first and keep VAT out of the sum.

What HMRC’s free online service does, and does not do

HMRC’s free online service is named for verifying subcontractors, filing monthly returns, nil returns and corrections. Its guide does not say the service produces payment and deduction statements:

HMRC's CIS340 guide, para 3.15, as recorded:

does not say the online service produces payment and deduction statements. Contractors must issue those themselves (para 3.15)

Source: HMRC: Construction Industry Scheme — a guide for contractors and subcontractors (CIS340). Updated 6 April 2026. Read 2 November 2026.

So the statement is the contractor’s own document, not something the free service issues. From 6 April 2026, nil returns were reinstated for mainstream contractors; payments to local authorities and public bodies are outside CIS (CIS340 paras 4.18, 2.11). This page files nothing to HMRC, and neither proposed tool would file anything to HMRC.

The options today, stated neutrally

One-off spreadsheet templates exist. We read one Payhip tracker at GBP 11.99 and a bookkeeper’s workbook at GBP 250. Etsy items appeared only as search snippets, at listed prices from about USD 3.5 to USD 27.8 (leads, not pages we read). No sales or review count was shown on the pages read, so these are list prices, not evidence of sales.

Xero and Sage include CIS features, and InvoiceFree UK also lists CIS support. We do not state the software prices here: the figures we saw are search snippets, not vendor pages. This page does not rate any of them.

Source: the desk check’s record of the Payhip page, the Etsy snippets, the Xero and Sage snippets and the second reader’s note on InvoiceFree UK. Read 2 November 2026.

How this page is checked

Every quoted line above is a line of the page’s one data file, and a test fails the build when a quote that is served is not a line of that file. Another test fails the build if a banned word appears. The quotations are copied exactly from the records, with the read date of each source; no web source was re-fetched for this build. If a source changes or we find an error, we correct this page and record it here. Read 2 November 2026.

No corrections yet (sources read 2 November 2026).