Here is a checklist of 10 top tips to make sure HM Revenue & Customs (HMRC) can process your Construction Industry Scheme (CIS) repayment claim quickly:
- Ensure the company’s Agent is authorised specifically for PAYE to act on its behalf for CIS repayments.
- Double check that the Unique Taxpayer Reference (UTR) and the company subcontractor’s name are correct on all documents.
- Check all the company’s Payment and Deduction Statements that HMRC has requested to process the claim are submitted and that they are for the correct period.
- If the company was incorporated during the year, ensure that the claim for repayment is only for deductions taken from the company’s payments and not any for periods before incorporation.
- Check that the CIS deductions taken from the company’s subcontractors are correct and have been reported correctly on the monthly returns.
- Check that the company has no outstanding returns (CIS300) in its capacity as a contractor within CIS.
- Ensure that form P35 – or the final Employer Payment Summary (EPS) under Real Time Information (RTI), showing CIS deductions taken from the company’s payments, has already been submitted.
- Submit any information requested within the timescale specified by HMRC, such as following receipt of a ‘CIS suffered letter’ and that everything is included that HMRC has requested.
- Where there are overpayments that do not relate to CIS, verify how these have arisen by providing documentary evidence to HMRC, along with the company’s claim for repayment.
- Where the company has ceased trading, remember to send in all outstanding returns for the subcontractors.
The leaflet ‘Limited Company Subcontractors claiming back CIS deductions’ published in April 2013 can be viewed here
(Copyright: HMRC July 2013)