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HMRC internal manual

Construction Industry Scheme Reform Manual

Monthly return: issue monthly return: pre-population following a period of temporary inactivity


CISR62600 Action guide contents

When a contractor tells us that they will not be paying any subcontractors for a period ofsix months, the CIS record will be noted with the start and end date of the period of inactivity (within the set parameter of six tax months). When the captured return is processed advising of the period of inactivity the system will automatically set the signal. It is to ensure that no returns are issued unnecessarily. The first return to be issued automatically after a period of temporary inactivity will be for the 7th income tax month after the initial period was set.

For example:

  • A contractor completes a return for the period between 6 October and 5 November  2008. An ‘X’ in box 8 on the CIS300 tells us that the contractor does not expect to pay any subcontractors during the next six months. The system automatically checks returns history and establishes that all returns have been made for the whole of 2007/2008 (the PY) and for months 1 to 6 of 2008/2009 (the CY). It then automatically sets an inactivity period on the CIS record.

The next pre-populated return to be prepared and issued will therefore be for the income tax month 6 May to 5 June 2009 (that is, the 7th income tax month following the setting of the inactivity period).

It is worth noting that in the above example, we will not have any relevant informationon record with which to pre-populate the return for month 2 of 2009/2010. This is because the CIS system only takes information from the last three months for pre-population. When this happens any subcontractor fields on the form CIS300 which would normally have been pre-populated (typically, page 2) will be over-typed with ‘X’s. This prevents a contractor completing page 2 and entering (as the contractor should) additional payment details on page 3 and on any continuation sheets.

See CISR67000 onwards for more specific information on periods of temporary inactivity.