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HMRC internal manual

PAYE Manual

Employer records: maintain employer record: verification of deductions under CIS - up to 2007 (Action Guide)

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.

To take the appropriate action when asked to verify whether credit for deductions made under the CIS provisions have been reported accurately, follow steps 1 - 7 below. This Guide is presented as follows

Step 1

Steps 2 - 7


Initial action

  1. Check the correspondence to ensure that your office deals with the contractor
  • If so go to step 2, otherwise
  • Notify the subcontractor’s office that the correspondence has been passed on and to which office

Action in PAYE Employer Office

  1. Compare the figures provided by the subcontractor with the corresponding figures on the CIS36 Continuation Sheet

  2. If they agree

  • Advise the PAYE Employer Office that credit can be given for the amounts claimed
  1. Where they do not agree, you must consider if the CIS36 contains any entries for the subcontractor
  • If there are any entries go to step 5
  • If there are not any entries go to step 7
  1. If the CIS36 contains entries for the subcontractor
  • Advise the subcontractor’s responsible office of the details on the CIS36 and confirm that credit can be authorised for this amount only
  1. Send a copy of the following to the PAYE Employer Office
  • CIS36 Continuation Sheet, and
  • The contractor’s signed Declaration from the reverse of the CIS36
  1. If there is no entry for the subcontractor on the CIS36 advise the PAYE Employer Office
  • That the CIS36 reveals no entry for the subcontractor, and
  • That you can not authorise any credit