Supporting Guidance: employer compliance: guidance by subject: construction industry scheme (CIS): scheme overview: CIS - from 6 April 2007 - open month inaccuracies
An open month is any month for which form CIS300 has not been submitted.
Where you identify an inaccuracy for an open month you should
- consider whether deductions have been made from subcontractors.
Where deductions have been made but not returned you should
- obtain form(s) CIS300,
- refer them to the CIS Processing Centre, Netherton and
- consider penalties for failure to submit a return (COG914290).
Where deductions have not been made from subcontractors you should
- calculate the deductions underpaid
- recover the underpayment by way of a contract settlement and
- consider penalties for failure to submit a return (COG914290)
- inhibit CIS and pursue any failure penalties via a contract settlement.
A subcontractor is not entitled to credit for deductions he has not suffered so you must not obtain retrospective returns where no deduction was suffered by the subcontractor.
Where a subcontractor has suffered deductions but you are unable to obtain retrospective CIS300 returns you should
- follow the guidance at COG909230.
Where a subcontractor has suffered deductions but the contractor has failed to make a return or to pay the money over to HMRC, you should
- follow the guidance at COG910150.