CIS Payment and Deduction Statements: What to Do When a Contractor Does Not Send One

If you work under CIS, the money taken from your pay is not supposed to vanish into thin air.

When a contractor deducts CIS from your payment, they should give you a payment and deduction statement. That statement is your proof of what was deducted, who deducted it, and which tax month it relates to.

Without it, your Self Assessment becomes harder than it needs to be.

And if you are owed a CIS refund, missing statements can slow everything down.

What is a CIS payment and deduction statement?

A CIS payment and deduction statement is a written record from the contractor showing the CIS deducted from your pay.

It normally includes:

the contractor's name
the contractor's tax reference
your name
your UTR number
the tax month
the gross amount paid
the cost of materials
the CIS deduction taken
the amount paid to you after deduction

This matters because CIS is not the same as normal PAYE. You are still self-employed. The deduction is paid over to HMRC as an advance payment towards your tax and National Insurance.

When you file your Self Assessment, those deductions are used against the tax you owe.

If too much has been deducted, you may be due a refund. But you need records to prove the numbers.

When should the contractor give you the statement?

If a contractor makes CIS deductions from your payment, they must give you the statement within 14 days of the end of the tax month.

A tax month runs from the 6th of one month to the 5th of the next.

So if the tax month ends on 5 June, the statement should be with you by 19 June.

That does not mean every contractor is organised. Some are. Some are not. Some will only send it when asked. Some will send a batch months later when you chase them.

That is not good enough if you are trying to keep your accounts straight.

Why missing CIS statements cause problems

Missing CIS statements create three problems.

First, you may not know whether the right amount has been deducted.

Registered subcontractors are usually deducted at 20%. If HMRC cannot verify you, the higher rate can apply. If materials are included incorrectly, the deduction may be wrong.

Second, your accountant has less evidence at tax return time.

A bank payment alone does not always show the gross amount, materials and deduction. You need the breakdown.

Third, you can lose track of what you are owed.

A lot of subcontractors only realise how much CIS they have suffered when January arrives. By then, they are hunting through emails, texts and old payslips trying to rebuild a year's worth of records.

That is exactly the sort of admin mess that causes tax return panic.

What to do if the contractor has not sent one

Start simple.

Send a polite message with the exact month, job and payment you are asking about.

For example:

Hi, can you send over my CIS payment and deduction statement for the tax month ending 5 June, covering the payment for the Green Street job? I need it for my records.

If there are several missing, list them clearly.

Do not send a vague message saying can you send my CIS stuff. Make it easy for them to respond.

If they still do not reply, follow up again and keep a record of the chase.

Keep your own CIS record as you go

Even if the contractor sends statements properly, you should keep your own record.

For each CIS payment, note:

contractor name
job
invoice number
gross labour amount
materials amount
CIS deducted
net amount received
payment date
statement received yes or no

This gives you a backup when something is missing.

It also helps you spot mistakes quickly. If you expected £600 after CIS and only received £520, you can question it while the job is still fresh instead of months later.

Watch materials deductions

One of the most common CIS mistakes is deduction being applied to the wrong amount.

CIS deductions are generally taken from the labour element, not from materials you supplied. If materials are not shown clearly, the contractor may deduct from too much.

That is why your invoices need to separate labour and materials properly.

Do not just put one line saying work completed £1,200 if part of that was materials.

Break it down clearly:

Labour: £900
Materials: £300
Total: £1,200

That makes the CIS calculation much cleaner.

Do not wait until January

The worst time to discover missing CIS statements is the week your tax return is due.

By then, contractors are busy, emails are buried, and your accountant is dealing with everyone else's panic as well.

A better system is to check every month.

Ask yourself:

did I get paid by any CIS contractor this month?
was CIS deducted?
did I receive the statement?
is the deduction recorded?
does it match my invoice and bank payment?

If the answer is no, chase it straight away.

How Dayrates helps

Dayrates is designed for UK tradespeople who do not want their business records scattered everywhere.

You can create invoices, separate job details, keep receipts organised and make month-end paperwork easier to hand over to your accountant.

For CIS subcontractors, the big win is simple: you stop relying on memory.

When tax time comes, you want records that make sense.

Final word

A CIS payment and deduction statement is not just admin. It is proof of tax already taken from your money.

If a contractor deducts CIS, make sure you get the statement. Check the numbers. Keep your own record. Chase missing statements while the job is still fresh.

The work is hard enough.

Do not let missing paperwork cost you money as well.