This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

PAYE Manual

Employer records: maintain employer record: verification of deductions under CIS - up to 2007

This information applies to the old CIS scheme for years up to April 2007, when ‘New CIS’ was introduced.

From April 2007 if you receive enquiries about New CIS from an employer / contractor or subcontractor they should be asked to contact the CIS helpline 0300 200 3210.

A contractor within the construction industry who has made payments to subcontractors holding registration cards is required to

  • Prepare a CIS25 voucher covering all payments made in the tax month
  • Sign the voucher

And within 14 days of the end of the tax month in which the payment is made

  • Forward part 1 of the CIS25 voucher to HMRC
  • Give part 2 to the subcontractor
  • Retain part 3

CIS25 provided

If a CIS25 is provided the subcontractor will claim credit for any deductions suffered

  • For a sole trader or partnership

    • When submitting their self assessment tax return to HMRC at the end of the tax year or when submitting a claim for repayment during the tax year
  • For a limited company

    • When submitting their annual return to HMRC at the end of the tax year. Repayment during the tax year is not permitted for limited companies


Exceptionally, you may be required to verify that credit for deductions made under the CIS provisions is due. This will usually be because

  • The subcontractor has not received a CIS25 voucher from the contractor


  • The HMRC copy of the CIS25 has not been received or submitted

And the contractor

  • Cannot be contacted or has become insolvent

If you are required to verify deductions made under the CIS provisions follow the Action Guide ‘Verification of deductions under CIS - up to 2007’ PAYE21241.