Create subcontractor statements

If you make deductions, you must send a payment and deduction statement to your subcontractor within 14 days of the end of each tax month.

Under 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
• The costs of materials invoiced by the subcontractor, excluding VAT

Keep the details for at least three years after the end of the tax year they relate to.

How CIS works in Sage Accounting

Once you activate CIS, you can: 

• Download payment and deduction statements to send to your subcontractors
• Track the payments invoiced by your subcontractors
• Use the CIS ledger accounts to track the total cost of materials, labour and CIS deductions

Follow our guide to set up CIS for your business.

Important

CIS reports will only include transactions entered once you've activated CIS.

Only make submissions via Sage Accounting if you entered all transactions using the CIS feature

If you have a combination of transactions entered using another system and Sage Accounting's CIS feature:

• Create the return from Sage Accounting
• Add your figures together from both systems
• Mark the return as submitted
• Submit to HMRC via the Government Gateway

If you've entered CIS transactions in Accounting manually, you can still set up the CIS feature. Follow our guide on how to start using the CIS feature.

Download subcontractor payment and deduction statements (CIS vouchers)

We create your subcontractor payment and deduction statements (CIS vouchers) at the same time as your CIS Monthly return. They're in a Zip folder with one PDF statement per subcontractor, paid within the period.

To comply with HMRC guidelines, download the statements and forward them to your individual subcontractors.

1. From Reporting, choose More and then CIS Monthly Returns.

2. From the relevant Monthly Return row, choose Download, then Subcontractor Statements.

We automatically save the statements in a zip folder in the default Downloads area on your PC.

Email or print subcontractor statements

We don't automatically email subcontractor statements to subcontractors. Each statement saves as a PDF file.

1. Open the Downloads area on your PC.
2. Open the zip folder. It's likely to have a name such as UK CIS Return followed by your company name.
3. From the menu bar choose Extract All, and choose where to save the subcontractor statements.
4. Once extracted, print each statement or attach the PDF file to an email to send to your subcontractor.