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HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
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Deductions: checking of deductions: failure to issue Payment and Deduction Statement (PDS)

CISR73000 Information contents

Take the following action when you are notified by a subcontractor that they have received a payment under deduction and the contractor has failed to provide them with a Payment and Deduction Statement (PDS).

The information that follows assumes that

  • either the contractor’s monthly return for the relevant period has not been submitted to HMRC (thus is overdue), or
  • the return has been received by HMRC but the subcontractor in question has not been included on that return.


  • Advise the subcontractor that they are entitled to receive a PDS in support of the payment and deduction suffered, and that they should go back to the contractor and obtain a PDS in order that credit may be given for the deduction.

Where the subcontractor claims that they have already taken the above action and, in spite of a further approach to the contractor they are still unable to obtain the PDS;

  • Ask the subcontractor to provide full details of the payments made to them to include:


  • contractor’s full name and address (and employer’s tax reference if known)
  • date of the payment(s) concerned or the tax month(s) within which they were made.
  • gross amounts paid and any amounts to be deducted for materials (excluding VAT)
  • the cost of any materials supplied by the subcontractor for the tax month
  • amounts deducted from the payments

Then proceed as follows as set out in CISR74030