What you must do as a Construction Industry Scheme (CIS) contractor

4. Verify subcontractors

Before you can pay a new subcontractor, you’ll need to ‘verify’ them with HM Revenue and Customs (HMRC).

HMRC will tell you:

  • whether they’re registered for the Construction Industry Scheme (CIS)
  • what rate of deduction to use or if you can pay them without making deductions

You must also verify subcontractors you’ve used before if you haven’t included them on a CIS return in the current or last 2 tax years.

How to verify

You can verify subcontractors using:

If you need to verify more than 50 subcontractors you’ll need to use commercial CIS software.

What you’ll need

Make sure you have:

You’ll also need your subcontractor’s:

  • UTR
  • National Insurance number if they’re a sole trader - you can’t verify temporary numbers, which start with ‘TN’ or 2 digits
  • company name, company UTR and registration number if they’re a limited company
  • nominated partner details, trading name and partnership UTR if they’re a partnership