Provisions the documents cite: reg 4 (monthly return; information to sub-contractors; nil return), reg 6 (verification of registration status of sub-contractor and nominee), reg 7 (payment of amounts deducted), reg 51 (inspection and retention of records)
What it requires
reg 6 — a contractor must verify with HMRC whether a person it proposes to pay (and any nominee) is registered for gross payment, for payment under deduction, or not registered, giving its own name, UTR, accounts office reference and employer's reference and the sub-contractor's name, UTR and National Insurance number or company registration number, by an approved electronic method unless an exception or HMRC direction applies (reg 6(2A)–(2C)); it may verify only once it has a contract with the sub-contractor or has formally accepted a tender, and need not verify a sub-contractor included on its return in the current or previous two tax years. reg 4 — a return is made not later than 14 days after the end of every tax month, electronically unless an exception or HMRC direction applies (reg 4(4)–(4B)), giving for each sub-contractor paid the payments, the amount representing the direct cost of materials to the sub-contractor, the amount deducted and, for an unregistered sub-contractor, the verification reference for higher rate deduction, with declarations that no contract is a contract of employment and that verification was complied with. Not later than 14 days after the end of the tax month the contractor gives each sub-contractor paid under deduction written information showing the contractor's name and employer's reference, the tax month or payment date, the sub-contractor's name and UTR, the payments, the materials amount and the deduction (reg 4(8)). Nil returns — the original duty (reg 4(10)–(11)) was omitted from 6 April 2015; from 6 April 2026 a contractor whose business includes construction operations and which has previously made such payments must again make a return for a tax month in which it made none, not later than 14 days after the end of that month, unless it notified HMRC not later than 14 days before the start of the month that it would make no payments in it (reg 4(9A)–(9B)). reg 7 — deductions for a tax period are paid to HMRC within 17 days after its end if paid electronically, or 14 days otherwise. reg 51 — contractor and sub-contractor records of payments, deductions and the direct cost of materials are kept for not less than three years after the end of the tax year to which they relate and produced to HMRC on request.
The instrument itself: https://www.legislation.gov.uk/uksi/2005/2045. The summary above is our plain-English reading, not the text of the instrument — always work from the source.
How this entry is kept current
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The 4 documents that cite it
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CIS records
- Monthly Payments and Materials Record
- Payment and Deduction Statement
- Subcontractor Verification Register