Create subcontractor statements (CIS vouchers)

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

You must keep the details for at least 3 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

Learn how to set up CIS for your business here >

Important

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

You should 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 have been manually entering CIS transactions in Accounting up to this point you can still set up the CIS feature. This will help ensure your accounts remain accurate. Read how in our Making the transition from Manual CIS to 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 are 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.

Make sure you complete and submit your CIS returns first. Read how to Submit your CIS Monthly Return >

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.