A subcontractor’s Invoice does not tell you which CIS deduction to make. Neither does the word "self-employed" on a work order. Before the first payment, establish the actual engagement, check the relevant HMRC guidance and keep the verification evidence connected to the person or business you are paying.
The Construction Industry Scheme, or CIS, concerns payments for work within its scope. This guide signposts official requirements and gives you a practical Word checklist for organising the questions and evidence with your accountant or appropriate adviser.
Sources were checked on 1 October 2026. The worksheet does not determine an individual engagement’s tax or employment treatment, submit a return or provide a deduction calculator. Its useful output is a reviewable record with named responsibilities and unresolved questions.
Download the Jobsworth CIS contractor checklist
One Word file with applicability and status questions, verification-evidence fields, a payment handover, monthly review checklist and completed missing-information example. HMRC sources checked 1 October 2026.
Check whether your business and the work fall within CIS
HMRC’s overview says businesses paying subcontractors for construction work must register as contractors. It also covers businesses outside construction that pass the stated construction-spending threshold. Check the current scope guidance against your actual activities rather than deciding from a trading name or business address.
The official scheme overview lists covered work and exceptions. Describe the purchased package clearly enough for the relevant person to assess it. "Site support" could hide several activities; a defined description gives the review something meaningful to examine.
Record the applicability question, source used, person reviewing and outcome. If you are uncertain about a mixed package or unusual arrangement, collect the actual scope and ask a targeted question. Do not tick the field merely because another supplier received similar treatment.
Where registration is required, HMRC’s contractor overview says to register before taking on the first subcontractor. The checklist prompts evidence of the business’s registration position and the responsible person, keeping it separate from the later verification of a particular subcontractor.
Review employment status before assuming subcontract treatment
HMRC instructs contractors to check whether they should employ the person instead of subcontracting the work. GOV.UK also explains that tax status and employment-law status can differ. A CIS registration or an Invoice should not replace review of the actual working arrangement.
Use the appropriate official employment-status route and seek qualified advice where the arrangement needs it. Provide the facts about how the work is organised, not a desired label. The worksheet records the review reference and any question still outstanding.
Keep the engagement review connected to the actual package and parties. A conclusion about one arrangement should not become a permanent assumption for every future piece of work. If the way someone works changes, identify what needs another assessment.
Give the person handling payments a clear result or a defined unresolved question. A general note saying "subcontractor details received" does not show that the employment-status issue was considered. Assign who supplies the missing evidence before the payment handover depends on it.
Prepare the correct details for HMRC verification
HMRC says a new subcontractor must be verified before payment. Its verification guidance also describes when an earlier subcontractor needs checking again, including whether they appeared on a return in the current or previous two tax years. Check the actual record instead of relying on recognition of the name.
The details required vary for a sole trader, limited company or partnership. Use HMRC’s verification list for the relevant type and ensure the details match the subcontractor’s HMRC registration. A familiar trading label may not be the registered identity needed for the check.
Keep tax identifiers in the appropriate restricted record. The worksheet can reference where verified details are held without copying every identifier into an operational work pack. People coordinating site access do not need a complete tax-information bundle to arrange attendance.
Record the verification date, result and reference through the actual HMRC or supported CIS process. HMRC’s result tells you the applicable deduction treatment. Do not substitute a percentage inferred from what the subcontractor says they usually receive.
Separate the payment evidence from the deduction decision
HMRC currently lists deduction rates of 20% for registered subcontractors, 30% for unregistered subcontractors and 0% for gross-payment status. Use the verification outcome and current guidance for the actual payment, rather than selecting a rate from those labels yourself.
The deduction guidance explains the calculation base and items treated separately, including VAT and qualifying material costs. The accountant or payment reviewer needs the actual Invoice and supporting information. An undifferentiated total can leave the basis unclear even when the percentage is known.
The download therefore has separate fields for the Invoice reference, gross amount, relevant components, verified treatment and reviewed calculation reference. It deliberately does not apply a generic percentage to the whole amount. The completed record should point to the calculation made through the proper financial process.
Resolve a missing or inconsistent component with the relevant person. Retain the question and the corrected evidence rather than editing an amount until it looks plausible. Confirmed work, an agreed subcontract price and the amount paid each have their own record.
Make the payment handover usable
Identify who reviews the calculation, who makes the payment and where the receipt or payment reference will be recorded. One person may do all three tasks, but the record should still distinguish their outcomes. A prepared calculation does not prove that money was sent.
Where deductions are made, HMRC says to provide a payment and deduction statement within 14 days of the end of each tax month. Record the relevant statement responsibility and actual delivery evidence. Use the official statement process rather than treating this planning worksheet as the statement itself.
For example, the office receives an Invoice under "Alder Joinery", while verification details identify a limited company using its full registered name. The useful next task is to confirm the identity and matching details. It is not to choose 20% because the supplier is remembered as registered.
The completed example in the pack records that mismatch, the evidence needed and the person resolving it. Its payment fields stay unresolved until the relevant review is complete. That gives the accountant a concrete question without inventing identifiers or a tax conclusion.
Plan the monthly return and HMRC payment separately
HMRC’s monthly-return guidance says returns must reach it by the 19th following the last tax month. Its deductions-payment guidance gives the monthly payment deadline as the 22nd, or the 19th when paying by post. Check the applicable payment arrangements and current guidance with the person managing the scheme.
The return, payment to HMRC and subcontractor statement are distinct tasks. A tick beside "CIS done" can conceal one still outstanding. The worksheet gives each a named owner, relevant period, expected action and actual completion reference.
HMRC also explains the nil-return or inactivity routes when no payments have been made. A quiet month should prompt review of the applicable route rather than silently disappear from the checklist. Record the decision made through the official process.
Before filing, reconcile the payment information with the records supplied to the reviewer. Identify corrections through the appropriate HMRC process. The checklist is an organisational aid, not evidence that an online submission succeeded simply because the supporting figures were prepared.
Retain a reviewable evidence trail
HMRC’s record-keeping page specifies relevant payment, deduction and material-cost records and says to keep the details for at least three years after the end of the tax year concerned. Review any additional retention requirements with the appropriate adviser rather than treating that minimum as a universal deletion date.
Store the original evidence and references so another authorised person can follow the engagement review, verification, payment and reporting steps. Keep internal work coordination separate from sensitive tax records, with the relevant access arrangements for each.
Start with one upcoming subcontract engagement. Complete the applicability and status-review fields, prepare the relevant verification information and assign the unresolved items. Then use the payment and monthly sections with your financial reviewer. The useful checklist shows what has been evidenced and what still needs an answer.