Construction Industry Scheme: Repayment Claims for limited company Subcontractors

Previously, subcontractors that are limited companies, that had deductions taken from Construction Industry Scheme payments and need to reclaim these deductions from HMRC, had to write to HMRC or call the HMRC helpline in order to make their claim. Now there is an electronic form available on your HMRC online account that you have to use to submit your claim.

After all year end submissions have been sent to HMRC for the Employer – the final Full Payment Submission and the final Employer Payment Summary – you can complete the online form for your claim. No supporting documentation is required to support your claim.

However please note; if the repayment is to be sent to your agent or a nominee you will not be able to use the online claim form, you will need to send the claim and a signed form R38 to the following address:

National Insurance Contributions and Employer Office
HM Revenue & Customs 
BX9 1BX

If you are using BrightPay you can claim the CIS deductions suffered by entering the amount in the HMRC Payments section and create and send an Employer Payment Summary to HMRC with this amount reclaimable from HMRC. HMRC will update your PAYE online account accordingly.

Please see a link to our online tutorial for CIS in BrightPay - https://www.brightpay.co.uk/tutorials/cis-entering-contractor-and-subcontractor-details/  

Posted byDebbie ClarkeinCIS

CIS - Penalties and Appeals Service goes live

HMRC have announced that the Penalties and Appeals service, for The Construction Industry Scheme, has now gone live.

Details of how to access the service can be found at https://www.gov.uk/what-you-must-do-as-a-cis-contractor/file-your-monthly-returns under the heading, "If you disagree with a penalty".

The scale of penalties for late CIS returns is shown below.

How late the return is and associated penalty:-

1 day late £100
2 months late £200
6 months late £300 or 5% of the CIS deductions on the return, whichever is higher
12 months late £300 or 5% of the CIS deductions on the return, whichever is higher

For returns later than this, you may be given an additional penalty of up to £3,000 or 100% of the CIS deductions on the return, whichever is higher.

You must still file a return for the months when you made no payments to subcontractors (unless you request for your scheme to be made inactive). This is called a ‘nil notification’.

Posted byPaul ByrneinCISConstruction Industry SchemeHMRC