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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: CIS300 - familiarisation - CIS300(Notes) - page 5 & 6

The text of the notes contains useful information for contractors.

Pages 1, 2, 3 and 4 of the notes can be found in the information panels at CISR61190, CISR61200, CISR61210 and CISR61220. Pages 5 & 6 conclude with:

Materials paid for by the subcontractor. Enter the amount for the cost of any materials paid to the subcontractor in the month.

Total amount deducted on account of tax. Enter the amount you have deducted from the subcontractor in the month. If making a payment under deduction to a subcontractor for the first time, you must use the deduction rate we gave you.

If making a payment under deduction to a subcontractor you have paid previously, you must continue to use the same deduction rate as before unless we have told you of a change to that rate.

Example of how to calculate the deductions

Using an 20% rate

Total payments made £2, 567.00 (A)    
       
Less cost of materials £367.00 (B)    
Total amount deducted (A) – (B)   £2,200 x 20% = £440.00  

Using a 30% rate

Total payments made £2, 567.00 (A)  
     
Less cost of materials £367.00 (B)  
Total amount deducted (A) – (B)   £2,200 x 30% = £660.00

If a subcontractor’s tax treatment changes in the month and you have made payments under deduction of tax as well as gross payments, you should only make one entry for that subcontractor showing the total payments and deductions made.

Declaration and Certificate

Nil return (Box 5). If you wish to report a nil return on this form

  • Put an ‘X’ in this box only if you have paid no subcontractors in the month covered by this return
  • Sign your usual signature in box 9

You may also report a nil return by phoning the CIS helpline on 0300 200 3210 or going online at .

If you have paid subcontractors this month (Box 6).

Employment status. Put an ‘X’ in this box when you have considered that all the subcontractors on this return and any continuation sheets are genuinely self-employed in relation to the work they have done for you. If you have any doubts or questions on employment status please phone the CIS helpline on 0300 200 3210 for advice.

Verification. Put an ‘X’ in this box to confirm that every subcontractor on this return and any continuation sheets has been properly verified with us or has been included

  • In a previous monthly return in the current tax year, or
  • In CIS returns for the past two tax years

Please note we may penalise you if you make false statements.

Correcting Mistakes. If you realise you have made a mistake on a previous return please phone the CIS helpline on 0300 200 3210.

Please do not make any minus entries on a return.

For full information about correcting mistakes please look at the CIS340Guide to the Construction Industry Scheme available online at or in your contractors’ pack.

How we use your information. HM Revenue and Customs is a data controller under the Data Protection Act 1998. For more information go to http://www.hmrc.gov.uk/cis and look for Data Protection Act within the search facility.