What is a CIS Statement?
A CIS Payment and Deduction Statement (sometimes called a CIS voucher or PDS) is a document that a contractor must give to a subcontractor each time they make a payment under the Construction Industry Scheme. It shows exactly what was paid, what was deducted, and what was passed to HMRC.
Subcontractors use CIS statements to prove to HMRC the deductions that have been made from their income — essential for claiming them back through Self Assessment.
When Must Contractors Issue CIS Statements?
Contractors must provide a CIS statement to each subcontractor every time they make a payment. There is no specific deadline — it should be provided with or shortly after the payment itself.
If a subcontractor requests a statement from a previous period, the contractor must provide it.
What Must a CIS Statement Include?
A valid CIS Payment and Deduction Statement must contain:
- The contractor's name and employer reference number (ERN)
- The subcontractor's name
- The subcontractor's UTR number (Unique Taxpayer Reference)
- The tax month the payment was made in (e.g., "Month ending 5 May 2026")
- The gross amount paid (before deductions, excluding VAT)
- The cost of materials included in the payment (if any)
- The amount of deduction made
- The net amount paid to the subcontractor
HMRC provides a model CIS statement format, but contractors may use their own format as long as all required information is present.
CIS Statement: Example
PAYMENT AND DEDUCTION STATEMENT
Contractor: Redwood Construction Ltd Employer Reference: 123/AB12345 12 Commerce Street, Leeds, LS1 1AA
Subcontractor: J Smith Brickwork UTR: 1234567890
Tax Month: Month ending 5 June 2026
| £ | |
|---|---|
| Gross payment amount (before deduction) | £3,200.00 |
| Cost of materials included | £0.00 |
| Amount deducted (20%) | £640.00 |
| Net payment made | £2,560.00 |
The amount deducted (£640.00) has been paid to HMRC on your behalf and credited against your tax liability.
Why CIS Statements Matter to Subcontractors
CIS statements are your evidence for HMRC that deductions have been made. When you complete your Self Assessment return, you enter the total of all CIS deductions suffered during the year. HMRC credits this against your tax bill.
If your CIS deductions exceed your tax bill, HMRC will refund the difference. Without the statements, you cannot prove what was deducted.
Keep all CIS statements received for at least 6 years — the same retention period required for other business records.
What if a Contractor Doesn't Provide a Statement?
Contractors are legally required to issue CIS statements. If a contractor fails to provide one, the subcontractor can:
- Ask formally in writing — request the statement and document the request
- Contact HMRC — HMRC can check the contractor's monthly returns to confirm deductions made
- Check their online personal tax account — subcontractors can sometimes see CIS deductions credited in their tax account at gov.uk/personal-account
CIS Statements vs Payment and Deduction Certificates
These terms refer to the same document. "CIS statement," "payment and deduction statement," and "CIS voucher" are all used interchangeably in practice. The official HMRC term is Payment and Deduction Statement.
Annual CIS Summary
Some contractors also provide an annual summary of all payments and deductions for the tax year. This is helpful for subcontractors preparing their Self Assessment return as it consolidates all the monthly statements into one document.
While not legally required as a standalone document (contractors report monthly through the CIS return), providing an annual summary is good practice and appreciated by subcontractors and their accountants.
FlashBill CIS Statement Generation
FlashBill generates CIS Statement PDFs automatically for each tax year. These can be shared directly with your accountant or downloaded for your records. The statement summarises all CIS invoices, deductions, and net payments for the year.