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HMRC internal manual

Construction Industry Scheme Reform Manual

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HM Revenue & Customs
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Verify subcontractor: overview: verification where scheme shown as inactive

CISR51600 Action guide contents
   

Inactive schemes

Where you attempt to verify a subcontractor against a scheme reference that iscurrently shown as ‘Inactive on CIS’ you will receive a warning/error message.The CIS contractor record being marked as ‘inactive’ means that HMRC are not expecting thecontractor to file CIS monthly returns, as the contractor has advised that they have nosubcontractors at present. It has no bearing on what information is shown for thecontractor on the Employers Business Service (EBS) record for the contractor. Before youcan proceed further to verify, you will need to confirm with the contractor /caller thatthe scheme details are correct and that they wish to continue with the verificationprocess.

If the contractor wants to proceed it will be necessary for you to use the functionUpdate Registration Information’ in order to enter an ‘Inactivity’ end date on therecord. The Action Guide on how to do this is at CISR67630.Once this has been done you will be able to continue with the verification process, thisaction will also result in CIS monthly returns (CIS300) once again being issued to thecontractor.

You will need to bear in mind that in the case where a contractor has multiple contractorschemes, and one of them is shown as ‘Inactive’, it is possible that this ‘inactivity’ isbecause that particular contractor scheme has been ‘merged to’ one of the remainingcontractor schemes. (See CISR51090 regarding contractor schemechanges).