What are the recent changes to CIS payment and deduction statements?

From 1 December 2022, HMRC changed the way they are dealing with requests for payment and deduction statements from subcontractors, tax agents and representatives in the Construction Industry Scheme.  

 HMRC will now only deal with one Construction Industry Scheme (CIS) payment and deduction statement request per customer.  

 Further requests for information will be refused.

A CIS payment and deduction statement is provided to a subcontractor when a contractor makes a CIS deduction. It is written evidence that a subcontractor can use to prove any tax deductions with HMRC. The statement must be provided within 14 days of the end of each tax month in which the payment was made.  

This change means it’s even more important for subcontractors to keep a clear and thorough record of CIS payment and deduction statements. Subcontractors should review current records and ensure any missing or lost statements are obtained directly from contractors.  

It’s important to note that HMRC may consider requests for missing CIS payment and deduction statements if subcontractors can demonstrate they have tried to obtain the information, but have been unsuccessful, for example, the contractor has ceased trading.  

In this case, subcontractors should write to HMRC and include their name and address, the client name, address and Unique Taxpayer Reference (UTR), name and address of the contractors and their tax reference if known, the dates of the payments or tax months when the contractor paid them or the client, and finally, confirmation the contractor cannot provide the information.

At Indigo, we have an in-house team of experts who can provide help and support with ensuring your records are up to date and complete. We know how time-consuming and difficult keeping on top of paperwork can be, so let us do the hard work and you can relax in the knowledge you are protecting yourself.  

If you are a Contractor, you can contact us today for a free, no-obligation, business health check.

As a busy subcontractor, we know it can be time-consuming keeping track of your admin.  

Indigo has a safe and effective way to manage your remittances, payslips, and end of year statements on our digital platform, MyIndigo. You will even find some useful industry guides and discounted rewards. 

MyIndigo will save you admin time, and your data is safe and secure on the cloud, accessible 24/7, 365 days a year. 

To gain access to MyIndigo, you must be an Indigo subcontractor. MyIndigo will be available once you have completed your registration with Indigo.  

If you think you should have access to MyIndigo but don’t, or need more help setting up, please get in touch. One of our friendly team will be happy to help!