What is a CIS statement?

The short answer

A CIS statement — officially a payment and deduction statement — is a written record a contractor must give a subcontractor every time they make a payment with a CIS deduction taken from it. It shows what you earned, what was deducted, and the tax month it belongs to. Those deductions are your money, already paid to HMRC on your behalf — and the statements are your evidence when it's time to get credit for them.

When you should receive one

Contractors must issue a statement within 14 days of the end of each tax month in which they paid you with a deduction. A tax month runs from the 6th of one month to the 5th of the next — not the calendar month. So for work paid between 6 June and 5 July, your statement should reach you by 19 July.

One statement per tax month is normal, even if you were paid several times in it. It can be paper or electronic — a PDF by email is fine.

Why the deduction is 20% — or 30%

The standard CIS deduction is 20% of the labour part of your invoice, for subcontractors registered with HMRC for CIS. If you're not registered (or the contractor can't verify you with HMRC), the rate rises to 30% — a strong reason to register. Subcontractors with gross payment status are paid with no deduction at all; in that case there's nothing to deduct, so no statement is required.

Note the phrase labour part: materials you paid for are excluded before the deduction is worked out. That's why splitting labour and materials clearly on your invoices matters — it directly changes how much is held back. For the full picture on the rates, verification and gross status, see our guide to CIS deductions.

Why the statements matter so much

At the end of the tax year, the deductions on those statements are set against the tax and National Insurance you owe on your Self Assessment (or, for limited companies, handled through PAYE/EPS). Many subcontractors find they've overpaid across the year and are due a refund. Without statements, proving what was deducted becomes a slow untangle of bank records and phone calls — and it's your refund that waits.

If your statement never arrives

1. Ask the contractor first — in writing, so there's a record. Most missing statements are admin slip-ups, not foul play.
2. Check your own records — your invoices and bank credits let you reconstruct gross amounts and what was withheld.
3. If the contractor won't provide one, contact HMRC's CIS helpline. Contractors are legally required to issue statements and can be penalised for not doing so — and HMRC can confirm deductions reported against your UTR.

If you're the contractor

The obligations sit with you: verify subcontractors with HMRC before first payment, deduct at the right rate on labour, file a CIS300 return every month (by the 19th), pay the deductions over to HMRC, and issue statements within the 14-day window. Late returns carry automatic penalties that stack, so this is one of those jobs where a system beats memory.

This guide is general guidance, not tax or legal advice. Rules and rates can change — for your own situation, check current HMRC guidance or speak to your accountant.