CIS Verification: How to Verify Subcontractors with HMRC
Free CIS verification checklist for UK contractors. Step-by-step guide to verifying subcontractors with HMRC, deduction rates, UTR checks, and common mistakes to avoid.
Key Takeaways
- Always verify before making the first payment
- Record verification reference and date
- Re-verify at least annually
- Use the exact legal name, not trading name
- When in doubt, call HMRC to clarify
This checklist, running itself
Everything this checklist asks you to record — UTR, verification number, deduction rate, dates and re-verification — lives on the subcontractor record in Site Samurai, with the rate applied to every payment and the full verification history kept automatically.
What is CIS Verification?
When you take on a new subcontractor, you must verify them with HMRC before making the first payment. HMRC will confirm their registration status and tell you which deduction rate to apply. This protects you from penalties and ensures your subcontractor is taxed correctly.
- Must verify before first payment
- HMRC confirms the correct deduction rate
- Verification is valid until circumstances change
- Re-verify annually or when details change
The Three CIS Deduction Rates
HMRC will tell you which of three deduction rates applies to each subcontractor. The rate depends on their registration status and payment history with HMRC.
- 0% (Gross Payment Status): Subcontractor receives payments without deduction
- 20% (Registered/Verified): Standard rate for registered subcontractors
- 30% (Unregistered/Unverified): Higher rate for those not properly registered
Download Templates
Information Needed for Verification
What you need depends on whether the subcontractor is an individual, company, or partnership. Having the right information before contacting HMRC makes the process faster.
- Individuals: Name, UTR, National Insurance number
- Companies: Company name, UTR, Company registration number
- Partnerships: Partnership name, UTR, Partner details
- All: Trading name if different from legal name
How to Verify with HMRC
You can verify subcontractors online through your HMRC business account or by phone. Online is faster and provides immediate confirmation.
- Online: Log into HMRC business account > CIS > Verify a subcontractor
- Phone: Call HMRC CIS helpline with subcontractor details
- Keep verification reference numbers
- Record the date of verification
When to Re-Verify
Verification isn't forever. You should re-verify subcontractors periodically and whenever circumstances change to ensure you're still applying the correct rate.
- At least annually for ongoing subcontractors
- When subcontractor changes legal status (e.g., sole trader to limited)
- When subcontractor provides new details
- When you receive HMRC notification of status change
Common Verification Mistakes
Avoiding these common errors will save you time, protect your subcontractor relationships, and keep you compliant with HMRC.
- Not verifying before first payment
- Using incorrect or outdated UTR
- Confusing trading name with legal name
- Not keeping verification records
- Applying the wrong rate without checking
Keep CIS verification records audit-ready with Site Samurai
Track CIS verification records and compliance expiry dates, and keep audit-ready data for the monthly return.
Or start your free trial →CIS Verification FAQ
AUTOMATE THIS WORKFLOW
Track CIS verification records and compliance expiry dates, and keep audit-ready data for the monthly return.