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HMRC internal manual

Construction Industry Scheme Reform Manual

Monthly return: issue monthly return: what address will the return be issued to?

CISR62600 Action guide contents

CIS uses four different address types. These are:

  • Capacity Address
  • Communications Address
  • Base Address, and
  • Trading/business Address

Capacity Address - under CISR there are both ‘agents’ and ‘capacitors’. And there is a subtle difference between the two.

An agent is someone (or some body) wilfully and specifically appointed by a customer to undertake tasks on their behalf with regard to their tax affairs. A form 64-8 will need to be in place to allow an agent to receive details about a customer on that customer’s behalf. The form 64-8 is a convenient method provided by HMRC to facilitate a customer giving their signed authority for an agent to act on their behalf.

Remember, there are two types of agent under CIS - Customer Level Agents (CLA) and Scheme Specific Agents (SSA). See CISR19000 for more information.

A capacitor is someone (or some body) appointed under particular circumstances. For example

  • Death
  • Liquidation
  • Bankruptcy

A form 64-8 does not necessarily need to be held to allow a capacitor to receive details about a customer on that customer’s behalf.

A capacitor supersedes both the customer and any agent also acting.

The capacity address will be either that of an acting agent (for example, accountant, tax adviser) or a capacitor (for example, personal representative). The capacity address is entered on the CIS record at the registration process stage. (See CISR31000 for more information).

If the CIS record indicates that a capacitor is acting, it is to this address that the return will be sent.

If there is more than one person or body acting as a capacitor, the first entered onto the CIS system will be treated as the main one and the return sent to that address.

It does not matter if the capacitor’s preferred contact method is different to that of the contractor.

Communications Address - this will be provided by the sole trader at the registration process stage. If there’s no capacitor address shown on the CIS record, returns will be sent to the communications address.

Base Address - for a sole trader, this is their private address.

Trading/business Address - for a sole trader this may or may not be the same as the home address and/or communications address.

What if an address is RLS?

Each of the four address types used in CIS can be set to RLS. If an address is found to be RLS, the order in which alternative addresses on the CIS record will be used is as follows:

  1. Capacity Address
  2. Communications Address
  3. Base Address
  4. Trading/Business address.

If all four addresses are found to be RLS, the output documentation (in this case, the monthly return) will be withheld and the matter referred to the Tracing Unit (TU) based at Shipley. An RLS signal will be/have been set automatically on the CIS system. The TU will then attempt to trace a new address. When one is ascertained, the RLS signal will be automatically un-set and any withheld output (in this case, the monthly return) automatically re-issued. CISR62220 has more information on the setting of the ‘inhibit output’ signal.

Any RLS address can be updated by an operator using the ‘Update Customer’ process. (See CISR30000 onwards).

Because the only access to the CIS screens is by way of the ‘Authenticate Customer’ windows attached to the various functions, a record will be kept in the Contact History Framework of all contacts between CIS and our customers. See CISR90220 for more information.