small businesses often run two different people processes in the same month: employee payroll and CIS subcontractor payments. The records can meet in the accounts process, but they are not the same process. Keep the handoff clear so a subcontractor payment does not get treated as payroll, or an employee decision does not get hidden in CIS.
This checklist is an operational prompt. Check current HMRC dates for your payment frequency and circumstances rather than relying on a static calendar.
Before the final pay run
- [ ] Confirm employee starters, leavers, pay changes, overtime, absences and approved expenses through the authorised payroll process.
- [ ] Check the employee-payroll cut-off and the person responsible for approving the final inputs.
- [ ] Confirm any CIS payments are held in a separate secure subcontractor record with verification outcomes and payment calculations.
- [ ] Resolve uncertain worker-status treatment before finalising either process.
Payroll close
- [ ] Check pay results against the approved inputs and investigate material changes.
- [ ] Send the Full Payment Submission (FPS) on or before employees are paid, using the current HMRC payroll process.
- [ ] Consider whether an Employer Payment Summary (EPS) is required for the tax month, including where no employees were paid or other HMRC circumstances apply. Keep that decision separate from CIS nil-return or inactivity reporting.
- [ ] Retain the payroll report, approval trail and employee communications in their controlled payroll location.
- [ ] Check the PAYE/National Insurance payment amount and date for the business's payment frequency.
CIS close (if the business made subcontractor payments)
- [ ] Confirm all relevant subcontractor payments, material evidence, verified outcomes and deductions are included in the CIS working record.
- [ ] Issue payment and deduction statements within the current HMRC timescale where deductions were made.
- [ ] File the CIS monthly return by the applicable due date; HMRC currently describes the normal deadline as the 19th following the tax month.
- [ ] Arrange PAYE/CIS payment by the applicable method/date; HMRC currently states the 22nd for electronic monthly payment and 19th for payment by post.
- [ ] If no subcontractor payments were made, use the appropriate nil-return or inactivity route rather than silently skipping the month.
Owner review and secure retention
- [ ] Record what has been submitted, paid, still questioned and who owns the next action.
- [ ] Keep employee personal data, payroll reports, UTRs and other identifiers access-controlled.
- [ ] Reconcile total payroll/CIS costs to the accounts/job records at the appropriate level; do not publish identifiable pay data in job reviews.
- [ ] Add current HMRC deadlines to the business calendar using the official deadline service for the relevant circumstances.
Related FoxSums resources
- Worker or Employee? A Practical Status Guide for Small Businesses
- Hire an Employee or Engage a Contractor?
- CIS for Construction and Trades: Contractor and Subcontractor Guide
- Monthly CIS Contractor Checklist
Next step
Before the next payroll date, confirm who owns the input, approval and any EPS decision for the tax month.
Important
General information only. Check the facts and current official guidance for the business’s circumstances.