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HMRC CIS Deductions
HMRC is contacting CIS contractors about potentially incorrect deduction rates and materials figures.
Key points
- For contractors, this is an important reminder that the deduction applied must match HMRC’s verification result:
- • 20% for a verified, registered subcontractor
- • 30% where the subcontractor is unregistered or cannot be verified
- • 0% where HMRC confirms gross payment status
- Contractors should not rely solely on information supplied by a subcontractor or an outdated record. Verify subcontractors when required through HMRC’s CIS service and retain the result.
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