Verification is not simply a box to tick at the end of a payment run. It is the point at which the contractor gives HMRC the relevant identity details and receives the deduction outcome to use for the subcontractor. A well-prepared process makes the verification faster and leaves a record the office can use at the next payment.
This guide explains how to prepare and document the process. It does not log in to HMRC, verify anyone on the reader's behalf, decide employment status or replace current HMRC guidance.
Step 1: establish the engagement first
Confirm the legal party being engaged, the job reference and the nature of the construction work. Consider employment status before assuming a person belongs in a CIS process. CIS registration or a UTR does not answer that separate question.
Step 2: collect the correct identity details securely
HMRC's required information depends on whether the subcontractor is a sole trader, company or partnership. Obtain it from the subcontractor and check it against the legal identity being paid. Keep UTRs, National Insurance numbers and related identifiers only in an access-controlled record.
For your contractor record, have the contractor UTR, Accounts Office reference and PAYE employer reference available. Do not put these into an open template.
Step 3: use the HMRC service or compatible software
Verify through the HMRC CIS online service or compatible commercial software before payment. Submit the details exactly as registered. If a result does not match the expected identity, stop and correct the record rather than using a guessed alternative.
Step 4: record the result, not just “verified”
Retain the verification reference, date, legal party, result and responsible person with the secure CIS/payment file. The outcome tells the contractor the deduction rate or gross-payment treatment to use; do not replace it with a label such as “normal CIS”.
Step 5: make the payment record follow the result
Use the verified outcome alongside the payment amount and any evidenced material/other exclusions. Retain the calculation and issue the required statement. Then include the relevant payment in the monthly return process.
When to revisit a record
Check the current HMRC rule on whether a previous verification can be relied upon. Revisit the record if the legal entity, details, engagement or payment circumstances change. A business should not treat an old spreadsheet line as permanent evidence.
A simple handoff between site and office
| Site / commercial owner | Office / CIS owner |
|---|---|
| Provides job reference, scope and named party | Checks secure identity record and submits verification |
| Flags changed entity or new engagement | Retains reference/result and applies it to payment process |
| Does not collect sensitive identifiers in informal channels | Escalates identity mismatch or unclear status before payment |
Related FoxSums resources
- CIS for Construction and Trades: Contractor and Subcontractor Guide
- Monthly CIS Contractor Checklist
- CIS Subcontractor Information Checklist
- CIS Deduction Calculator for Contractors
Next step
Verify a subcontractor before the first payment and keep HMRC’s response with the secure record.
Important
General information only. Check the facts and current official guidance for the business’s circumstances.
Sources and review
- Evidence check date: 3 November 2026. This is a specialist construction and trades resource; it is not presented as general small-business compliance guidance.
- GOV.UK - Verify subcontractors
- GOV.UK - CIS contractor deductions and payment statements
- GOV.UK - CIS monthly returns
- GOV.UK - CIS340