Contractors must give subcontractors a Payment and Deduction Statement within 14 days of the end of each tax month. Here's how the deadline works.
22 June 2026
If you deduct CIS from a subcontractor's payment, you owe them proof of what was deducted and why. That proof is the Payment and Deduction Statement, and it comes with a firm deadline that catches out contractors who leave it too late in the month.
A Payment and Deduction Statement is the document you give a subcontractor showing what you paid them in a tax month, how much of that (if any) was excluded as materials, and how much CIS was deducted. It's the subcontractor's evidence of the tax already deducted at source, which they'll need when they file their own tax return and reconcile what they owe against what's already been taken off.
You need to issue one for every tax month in which you made a deduction, even if it's just the one payment to one subcontractor.
You must give the subcontractor their statement within 14 days of the end of the tax month the payment falls in. Since CIS tax months run from the 6th to the 5th rather than the calendar month, the 14 days count from that 5th, not from the end of the calendar month.
For example, a payment made within the tax month ending 5 July needs its statement with the subcontractor by 19 July. If you paid the subcontractor several times within that tax month, all of those payments should be consolidated onto the one statement covering that period, not issued separately.
The most common reason contractors slip past the 14-day deadline isn't carelessness, it's confusing tax months with calendar months. If you're mentally tracking "June's payments" as 1 to 30 June rather than the tax month running 6 June to 5 July, you can end up calculating the deadline from the wrong end date and issuing statements late without realising it.
It's also easy to let statements slide when you're focused on getting the CIS300 return filed by the 19th, since both deadlines land close together and the statement deadline is arguably the less visible of the two, since it's owed to the subcontractor rather than to HMRC.
At minimum, a compliant statement needs to show the contractor's and subcontractor's details, the tax month it covers, the gross amount paid, any materials cost excluded, and the amount deducted. If a subcontractor is on gross payment status and nothing was deducted, you don't need to issue a statement for that payment, since there's no deduction to evidence, though many contractors issue one anyway for the subcontractor's own records.
Missing the 14-day deadline is a compliance failure that can attract penalties, separately from any penalty for a late CIS300 return. It also leaves your subcontractor without the evidence they need for their own tax filing, which is a fair source of friction if they're chasing you for it.
The most reliable way to avoid missing this is to treat statement generation as part of the same monthly task as your CIS300 preparation, rather than a separate afterthought. Once you've worked out each subcontractor's gross, materials, and deduction figures for the tax month, for their CIS300 return, producing the statement is largely the same data, just formatted for the subcontractor rather than HMRC. Doing both at the same time, as soon as the tax month closes, gives you the full 14 days as a buffer rather than as your actual working window.
This is especially worth tightening up if you're running several subcontracted crews at once, since the routine that's manageable for one or two subcontractors doesn't always scale cleanly to a dozen. Our guide for bricklaying contractors covers this in the context of managing several gangs a month.
If chasing the 14-day deadline across a growing subcontractor list is starting to feel tight, our CIS statement generator produces every subcontractor's statement for the tax month from a single upload, so you're not calculating and formatting each one individually against the clock.
See our guides hub for the rest of the CIS paperwork picture.