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HMRC internal manual

Construction Industry Scheme Reform Manual

The Scheme: contractors: monthly returns

Each month, contractors must send HMRC a complete return of all payments made in the preceding tax month to all subcontractors within the Scheme. All subcontractors must be included on the return regardless of whether they were paid

  • gross
  • net of the standard deduction, or
  • net of the higher deduction.

Monthly returns must be submitted within 14 days of the end of the tax month to which they relate. Failure to meet the deadline for their submission incurs automatic penalties. The legislation, under which these were charged and for what period, is shown in the table below, with further links provided for detailed guidance about the penalties charged under each provision.

Legislation For Monthly Return periods Guidance  
TMA70/s98A 06/04/2007 to 05/10/2011 CISR65040  
FA09/Sch 55 06/10/2011 onwards CISR65050  

From May 2016 the contractor CIS return must be submitted online.

If a contractor has paid no subcontractors in the month, they must tell us or they will incur a penalty. If contractors do not expect to pay subcontractors for a number of months they can ask us to inhibit the issue of the monthly return for up to six months and a period of ‘Inactivity’ will be set on the CIS record.

For more information on the monthly return, please see CISR60000 onwards.