When a verification question arises
When engaging a subcontractor, check whether verification is required and confirm the working arrangement. Verification is part of CIS administration; it does not by itself determine employment status or replace the other responsibilities of a contractor.
Details to confirm
Use the subcontractor’s correct details for their business type. A name that differs from the registered information or an incorrect reference can cause a problem. Ask for accurate details rather than repeatedly submitting guesses.
Recording the outcome
Retain the result and relevant reference with the subcontractor’s records. The payment information should reflect the applicable outcome. Keeping an accessible record helps explain the deduction treatment when preparing the related return or reviewing past payments.
construction businessesFrom verification to returns
Verification does not submit the CIS return. Payment reporting remains a separate task after the relevant activity. Use a consistent process to connect subcontractor details, invoices, payments and the bookkeeping records for the period.
CIS returnsYour questions, answered.
Do existing subcontractors need checking again?
Some do. HMRC’s current guidance explains when a previously used subcontractor needs verification again.
What if details do not match?
Confirm the details with the subcontractor and review the exact mismatch. Do not assume an approximate match is sufficient.
Does verification file the CIS return?
No. The return reports the relevant payment activity and needs its own preparation and submission process.