Monthly Returns: Overview: Introduction
The following example illustrates a typical contractor return process
Company A Ltd operates a building site and engages a number of subcontractors on a self-employed basis. The employment status of each has been looked at carefully and the contracts under which they are engaged are such that allows them to be paid under the Construction Industry Scheme. Each subcontractor has been verified with the Contact Centre and verification references obtained.
On 24 April 2009 information relating to each subcontractor both paid and verified by Company A Ltd over the last three months is gathered automatically by the CIS computer system.
This information allows a return form CIS300 to be pre-populated with both the contractor’s and the subcontractors’ details. This includes;
For the contractor
- Name and address, and
- Accounts Office reference
For the subcontractor
- Verification number
The pre-populated return is sent out together with a continuation sheet to Company A Ltd on 28 April 2009. It arrives on 2 May.
On 11 May, the company’s payroll department complete the return with details of the payments they have made to their subcontractors between 6 April and 5 May 2009. The return is posted on 12 May and arrives at Rapid Data Capture (RDC) in Netherton on 15 May. This is well before the final due date of 19 May 2009. (If the return was received after 19 May, a penalty would be incurred).
RDC will capture the return; there is no separate logging step for returns passing through RDC, it is captured by RDC on 16 May. This information in turn allows the CIS system to pre-populate the return for the following month.
On 24 May the process starts again in respect of the return for the next period - 6 May to 5 June 2009.
(Dates used are for illustrative purposes only)