CIS Payment and Deduction Statement Template (Excel and Word)
Free CIS payment and deduction statement template in Excel and Word. The exact fields HMRC requires, the 14-day deadline, and how the statement reconciles to the monthly return.
Key Takeaways
- Statements are due within 14 days of the end of the tax month, so by the 19th.
- HMRC prescribes the fields, not the format — you can design your own statement.
- The deduction applies to the payment after the cost of materials, excluding VAT.
- A verification number is only required where the subcontractor could not be verified and the higher rate was applied.
- Statements are only obligatory where a deduction has been made, though issuing them for gross-status subcontractors is good practice.
Deduction data that reconciles instead of being retyped
Site Samurai records HMRC verification numbers and 0%, 20% or 30% deduction rates against each subcontractor and applies them to every payment, with a re-verification cascade when a status changes. The line-level payment, materials and deduction data for each tax month sits on the record ready to reconcile against the monthly return you file with HMRC.
When the statement is due
The deadline is the same one as the monthly return, which is convenient: the return and the statements come off the same set of figures. A tax month runs from the 6th of one month to the 5th of the next, and the statement must be provided within 14 days of the end of that month.
| Tax month | Statements due by | Monthly return due by |
|---|---|---|
| 6 August to 5 September | 19 September | 19 September |
| 6 September to 5 October | 19 October | 19 October |
| 6 October to 5 November | 19 November | 19 November |
- A statement can be issued for each tax month, or for each payment where payments are more frequent.
- Statements are only required where a deduction has been made. HMRC describes issuing one for a gross-status subcontractor as good practice, but there is no obligation.
- A late monthly return attracts £100 at one day, £200 at two months, and £300 or 5% of the deductions on the return, whichever is higher, at six and twelve months.
What must be on the statement
HMRC’s wording is that contractors can choose the style of the statements, but they must include the following. Each item below is from that list — nothing has been added to it and nothing is optional.
- The contractor’s own name and employer tax reference.
- The end date of the tax month in which the payment was made, or the date of payment where the statement relates to a single payment.
- The subcontractor’s name.
- The subcontractor’s unique taxpayer reference (UTR).
- The personal verification number, but only where the subcontractor could not be verified and a deduction has been made at the higher rate.
- The gross amount of the payments made to the subcontractor.
- The cost of any materials that reduced the amount the deduction was applied to.
- The amount of the deduction.
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How the deduction is calculated
The deduction is applied after the cost of materials has been taken off the payment. Getting the materials line wrong is the most common source of an incorrect deduction, and it goes wrong in both directions.
| Subcontractor status | Rate | Applies to |
|---|---|---|
| Gross payment status | 0% | No deduction; statement not obligatory |
| Registered | 20% | The payment less the cost of materials |
| Unregistered or unverified | 30% | The payment less the cost of materials |
- VAT is excluded from the gross amount used for the deduction.
- Materials must be the actual cost to the subcontractor, not a marked-up figure.
- The rates above are the current published rates — check gov.uk before relying on a figure in any guide, including this one.
Worked example
A registered subcontractor is paid on 22/09/2026 for a package with a gross value of £8,400 excluding VAT, of which £1,900 is the cost of materials. The amount liable to deduction is £6,500 and the deduction at 20% is £1,300, so the net payment is £7,100. The payment falls in the tax month ending 05/10/2026, so the statement is due by 19/10/2026 and shows: the contractor’s name and employer tax reference; the tax month ending 05/10/2026; the subcontractor’s name and UTR; gross £8,400; materials £1,900; deduction £1,300. No verification number is shown, because the subcontractor was verified and the deduction was at the standard rate.
Common mistakes
CIS statements are simple documents that go wrong in a small number of predictable ways.
- Missing the 19th, which is the same deadline as the return and therefore easy to hold to.
- Marking up the materials figure, which understates the deduction and creates a liability for you, not the subcontractor.
- Including VAT in the gross figure, which overstates the deduction.
- Showing a verification number on every statement — it is only required where the subcontractor could not be verified and the higher rate applies.
- Emailing statements without the subcontractor having agreed to electronic issue, or in a format they cannot store and print.
- Statements that do not reconcile to the monthly return, which is the first thing anyone checks.
How the statement fits the monthly cycle
One set of figures serves both obligations. The payments made in the tax month determine the deductions, the deductions go on the monthly return by the 19th, the same figures go on each subcontractor’s statement by the same date, and the deductions are paid over to HMRC. Reconciling statements to the return before submitting is the check that catches a mis-keyed materials figure while it is still cheap to fix.
- Payments in the tax month → deductions → monthly return by the 19th → statements by the 19th → deductions paid over.
- Subcontractors use the statement to reclaim or offset the deductions, so an error reaches them as well as you.
- Keep the statement record for the same period as the rest of your CIS records.
Sources
Every requirement on this page was checked against the HMRC guidance named below before publication. Deduction rates and penalties change — check gov.uk before relying on a figure. This is general information, not tax advice.
- HMRC, Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340), paragraphs 3.2, 3.8 and 3.15 — gov.uk/government/publications/construction-industry-scheme-cis-340
- HMRC, "What you must do as a Construction Industry Scheme contractor" — gov.uk/what-you-must-do-as-a-cis-contractor
Last reviewed: 2 September 2026
Statements that reconcile to the return, every month
Site Samurai records the deduction rate against each subcontractor, applies it to every payment, and keeps the line-level data the monthly return is reconciled against.
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Keep deduction rates on the subcontractor record, apply them to every payment, and have the month’s figures ready to reconcile.