For a worker to be treated as a CIS Subcontractor for tax purposes, you as the contractor must ensure they are not subject to your supervision, direction, or control (SDC).
If a worker is subject to SDC, HMRC will likely view them as an employee. This doesn’t just affect the worker’s ability to claim expenses — it can also create liabilities for you, such as Employers’ National Insurance and the obligation to deduct PAYE.
That’s why it’s important not only to check that a worker isn’t subject to SDC, but also to keep a clear record showing you’ve checked and gathered supporting evidence.
The good news is that CIS Manager has a built-in tool designed for exactly this.
Simply enter the worker’s email address, and we’ll send them a mobile-friendly, branded questionnaire they can complete and sign in minutes. Once submitted, a statement confirming their SDC status is automatically generated and stored against their record in CIS Manager. Dated and signed.
Want to see how it works? Register for a free account, add a subcontractor, and click “Send SDC Statement.”
Got questions? We’re here to help.