Register and maintain contractor: overview: contractors in receivership
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Contractors in Receivership
When a contractor becomes insolvent an insolvency signal is set on the EBS record which feeds through to the contractor’s CIS record. When this happens, the system stops the issue of all CIS300 returns to all schemes associated with the contractor.
Where a trustee, administrator, receiver or liquidator continues to operate the business as a going concern, the insolvency practitioner might use subcontractors. If this happens a new contractor scheme will need to be opened on EBS in the name of the insolvency practitioner (See PAYE Online Manual under Insolvency of Employer).
Note that the contractor name entered on the CIS300 returns issued to the new contractor scheme will not include any reference to the insolvency.
You should tell the insolvency practitioner to destroy any returns with the old scheme reference and only use returns showing the new reference