8. Record keeping

Under the Construction Industry Scheme (CIS), you must keep records of:

  • the gross amount of each payment invoiced by subcontractors, excluding VAT
  • any deductions you’ve made from subcontractor payments

If you made deductions, you must also keep records of the costs of materials the subcontractor invoiced you for, excluding VAT.

Keep these details for at least 3 years after the end of the tax year they relate to. HM Revenue and Customs (HMRC) could ask to see your CIS records at any time.

You could be fined up to £3,000 if you can’t show your CIS records when asked by HMRC.