What Is CIS?

CIS stands for the Construction Industry Scheme, a UK tax system designed for people working in construction. If you're a subcontractor (someone hired by a contractor to do construction work), the contractor usually deducts tax from your payments and sends it to HMRC on your behalf.

What Is a CIS Statement?

A CIS statement is a monthly summary that a contractor gives to a subcontractor. It shows:

• How much you were paid

• How much tax was deducted

• Who paid you

• When they paid you

Think of it like a payslip, but for construction workers under CIS.

Why Is It Important?

• ✅ It proves how much tax you've already paid

• ✅ You need it to complete your Self Assessment tax return

• ✅ It helps you claim a refund if too much tax was deducted

• ✅ It keeps your records tidy in case HMRC asks for proof

 Example (Simple Version)

Let’s say you worked for a contractor and earned £1,000 in a month. If you're registered with HMRC, they might deduct 20% for tax — so you get £800, and £200 goes to HMRC.

Your CIS statement would show:

• Gross pay: £1,000

• Tax deducted: £200

• Net pay: £800

• Contractor name and details

• Payment date and tax month

If you’re just starting out or planning to work under CIS, keeping these statements safe is key. Want help understanding how to use them for your tax return or how to request missing ones? I’ve got you covered.

How Are CIS Statements Used in a Self Assessment?

When subcontractors file their Self Assessment tax return, CIS statements help fill in key sections:

• Declare your gross earnings – the full amount you were paid before deductions

• Report CIS deductions – the tax the contractor already withheld

• Calculate your tax liability or refund – HMRC uses the CIS info to figure out if you owe more tax or are due a refund

💡 The CIS deductions are treated as tax you've already paid. If too much was taken (which is common!), you'll likely get a refund — but only if you accurately report the figures from the CIS statements.

Why Is It Important to Keep CIS Statements?

• ✅ Proof of Income and Tax Paid – especially important if HMRC reviews your tax return

• ✅ Avoid Errors – guessing figures can trigger penalties or delay refunds

• ✅ Claim What You’re Owed – if you don’t include CIS deductions, HMRC won’t automatically refund you

• ✅ Support Your Record Keeping – useful for future returns, loan applications, or resolving disputes with contractors

Where Do You Get Them?

Your contractor should give you a CIS statement every month they pay you. If you've missed any, it's best to ask them directly — they’re obliged to provide them.