Verification Process (CIS)

Short Definition: HMRC process to confirm a subcontractor’s CIS status.

Long Definition: Before paying a subcontractor, contractors must verify them with HMRC. This process confirms whether the subcontractor is registered and determines which deduction rate applies. The contractor submits details such as the subcontractor’s UTR and business name, and HMRC returns a verification result. Failing to verify properly can result in incorrect deductions and potential penalties.