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HMRC internal manual

Construction Industry Scheme Reform Manual

Monthly returns: overview: legal background - Regulation 4(10) to (13) and Regulation 5

Regulation 4 is headed ‘Monthly Return’. Regulation 5 is headed ‘Scheme Representative’.

Sections 1-3 of Regulation 4 are at CISR61100. CISR61110 has sections 4-9. Here you have sections 10-13 and Regulation 5.

  1. If a contractor who has made a return, or should have made a return, under this regulation makes no payments under construction contracts in the tax month following that return, the contractor must make a nil return not later than 14 days after the end of that tax month.

This is subject to paragraph (11).

  1. Paragraph (10) does not apply if the contractor has notified the Commissioners for Her Majesty’s Revenue and Customs that the contractor will make no further payments under construction contracts within the following six months.
  2. Subject to paragraph (13), section 98A of TMA(a) (special penalties in the case of certain returns) applies to the requirements in-



  1. Paragraph (1),
  2. Paragraph (3)(b),
  3. Paragraph (3)(c),
  4. Paragraph (10).


  1. A penalty under TMA70/S98A in relation to a failure to make a return in accordance with paragraphs (1) or (10) arises for each month (or part of a month) during which the failure continues after the 19t h day of the sixth month following the appointed day.

(Note; CIS penalties under TMA70/S98A have effect only for returns with a filing date of 19th October 2011 and earlier. From the filing date of 19th November 2011 and later the legislation for CIS penalties became FA09/SCH55).

Regulation 5 is headed ‘Scheme Representative’.

  1. A company (‘the appointing company’) which makes payments under construction contracts may appoint another company in the same group (‘a scheme representative’) to act on its behalf in connection with any such requirements imposed on the company by these Regulations as the appointment specifies.
  2. An appointment under paragraph (1) shall not have effect until the appointing company has notified the Commissioners for Her Majesty’s Revenue and Customs
  3. A scheme representative must make returns and payments under these Regulations in the name of the appointing company.
  4. The appointing company remains liable in relation to all the requirements imposed on it by these Regulations notwithstanding any appointment under paragraph (1).
  5. For the purpose of paragraph (1) ICTA88/S413(3)(a) applies to determine whether two companies are in the same group.