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HMRC internal manual

Construction Industry Scheme Reform Manual

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HM Revenue & Customs
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Monthly returns: overview: legal background - Regulation 4(1) to (3)

The secondary legislation for CIS is contained at Part 2 of the above regulations.

Regulation 4 is headed ‘Monthly Return’.

Here you have sections 1-3. You can find sections 4-9 at CISR61110and sections 10-13 at CISR61120.

  1. A return must be made to the Commissioners for Her Majesty’s Revenue and Customs in a document or format provided or approved by the Commissioners -

 

 

  1. Not later than 14 days after the end of every tax month, by a contractor making contract payments or payments which would be contract payments but for section 60(4) of the Act (contract payments: exceptions), and

  2. Not later than 14 days after end of the tax month following the appointed day, by a contractor who has made a payment in the 12 months preceding the appointed day which would be a contract payment or a payment which would be a contract payment but for section 60(4) of the Act if made after the appointed day.

 

  1. The return under paragraph (1) must contain the following information –

 

 

  1. The contractor’s name,

  2. The contractor’s unique taxpayer reference (UTR) and Accounts’ Office reference,

  3. The tax month to which the return relates, and

  4. In respect of each subcontractor to whom, or to whose nominee, payments under construction contracts were made by the contractor during that month, -

* The sub-contractor’s name;
* The subcontractor’s national insurance number (NINO) or company registration number (CRN), if known, and
* The information specified in paragraph (3).
  1. The information specified is –

 

 

  1. If the subcontractor is registered for gross payment –
* The subcontractor’s unique taxpayer reference (UTR), and
* The total amount of payments which would be contract payments but for section 60(4) of the Act (contract payments: exceptions) made by the contractor to the subcontractor during the tax month;
  1. If the subcontractor is registered for payment under deduction –
* The subcontractor’s unique taxpayer reference (UTR),
* The total amount of contract payments made by the contractor to the subcontractor during the tax month,
* The total amount included in those payments which the contractor is satisfied represents the direct cost to any person other than the contractor of materials used or to be used in carrying out the construction contract to which the contract payment relates, and
* The total amount deducted from the payments mentioned in paragraph (3)(b)(ii) under section 61 of the Act (deduction on account of tax from contract payments);
  1. If the subcontractor is not registered for gross payment or payment under deduction –
* The subcontractor’s unique taxpayer reference (UTR), if known,
* The total amount of contract payments made by the contractor to the subcontractor during the tax month,
* The total amount included in those payments which the contractor is satisfied represents the direct cost to any person other than the contractor of materials used or to be used in carrying out the construction contract to which the contract payment relates,
* The total amount deducted from the payments mentioned in paragraph (3)(c)(ii) under section 61 of the Act, and
* The verification reference for higher rate deduction.

Turn to CISR61110 for Regulation 4 sections 4-9.