Contractors Monthly Returns

From April 2016 changes have been made to the Construction Industry Scheme (CIS). Part of the reforms were that contractors must file their monthly returns online.

HMRC have introduced a number of improvements to the CIS online service with a view to making it easier and more efficient to use. These changes include the facility to amend returns online. They have also introduced a new online message/alert service. HMRC will issue messages and alerts including:

  • Monthly Return Inactivity Confirmation
  • Period of inactivity about to end
  • Submission of a ‘nil’ monthly return during a period of inactivity
  • Submission of a monthly return containing payment information during a period of inactivity
  • Inactivity request for an inappropriate period
  • Return amendment where the number of subcontractors have changed
  • Cost of materials enquiry
  • Have you filed your Monthly Return yet?
  • Subcontractor tax treatment incorrect
  • Submission where HMRC are unable to match subcontractor information to their records.

These messages will be sent to the contractors HMRC CIS Online account. HMRC are asking contractors to check if they are receiving these messages via their commercial software package, otherwise contractors may need to access them via the HMRC online service.

Modified online subcontractor verification service

HMRC have also now modified the Subcontractor verification service which includes improved search and matching functions, and updated screens which will now display tax treatment details against each subcontractor. HMRC are encouraging contractors to use this service as the telephone verification service is expected to be removed from April 2017.

If you would like help with CIS issues or returns please contact us.

More info: Employer Bulletin