A CIS payment and deduction statement tells a subcontractor how much you paid them in a tax month and how much Construction Industry Scheme tax you took off. This free Excel template does the sums: list each job with its gross amount and materials, choose the rate, and it works out labour, the deduction and the net payment.
How is the CIS deduction calculated?
The deduction is a percentage of labour only. For each line the template takes the gross amount (excluding VAT), subtracts materials, and applies the rate you choose:
| Rate | When it applies |
|---|---|
| 20% | Subcontractor registered for CIS (the default) |
| 30% | Subcontractor not registered, or HMRC could not verify them |
| 0% | Subcontractor has gross payment status |
For example, a £4,500 job with £800 of materials gives £3,700 of labour. At 20% the deduction is £740 and the subcontractor receives £3,760. Deductions are rounded to the penny, and if materials ever exceed the gross amount, labour is treated as zero.
What details go on the statement?
The template follows HMRC’s CIS 340 guidance. It asks for your employer reference and the tax month ending date rather than your UTR, and it shows the gross paid, materials, deduction, rate and net payment. The verification number is only needed when you deduct at 30%. Every statement should carry its own statement number and date of payment, so save one copy per subcontractor per month.
Are you a subcontractor receiving these?
CIS deductions count as advance payments towards a subcontractor’s tax and National Insurance bill. Keep every statement you receive with your accounts. If your self-employed income is over the MTD threshold, those records also feed your quarterly updates, so read how Making Tax Digital for sole traders works.
