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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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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

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