Before paying your first subbie, register for CIS as a contractor with HMRC. If you also work as a subbie yourself, register as both.
Before first payment, verify each subbie with HMRC using their exact name and UTR. HMRC tells you their rate: 20% (registered), 30% (unmatched/unregistered) or 0% (gross status). Keep the verification reference.
For each payment: strip out VAT and the materials, plant and fuel the subbie paid for, then apply their rate to what's left — the labour element. A subbie's invoice that splits labour and materials makes this painless.
The return covers the tax month (6th to 5th) and is due by the 19th. Paid no subbies that month? You still file a nil return — skipping it earns the same penalty.
Pay the deductions over by the 22nd if paying electronically (19th by post). This is the subbies' tax money — it was never yours to spend.
Every subbie you deducted from gets a payment & deduction statement within 14 days of the tax month ending. They need it to claim the deduction back — and you're required to provide it.
Miss the deadline and it's automatic: £100 the moment the return is late, £200 at two months, the greater of £300 or 5% of deductions at six months, and again at twelve. Per return. The fix is boring: a system that keeps the numbers ready so the 19th is a five-minute job — which is what Tradeyuk's CIS log and Subbies Hub are for. Every verification, rate and deduction logged as you go, exported for filing in one click.
Tradeyuk logs every subbie, rate and deduction automatically — the 19th becomes a five-minute job.
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