Monthly return: process monthly return: compliance risks
As a part of the processing stage, HMRC at Netherton will identify the following compliance risk types:
- Unmatched subcontractor
- Unverified subcontractor
- Reactivation of inactive scheme
- Direct cost of materials is equal to or exceeds total payment (confirmed by contractor or unresolved)
- Subcontractor appears more than once on the return
- Return for period earlier than date of scheme registration
- ESI declaration not checked
- Verification declaration not checked
- Subcontractor matched on UTR only (verified against scheme)
- Subcontractor matched on two data items but other data captured which does not match
- Valid period in the future which is less than three months in the future
- Unregistered subcontractor.
Once the contractor return is fully processed all identified compliance risks are recorded in the CIS data warehouse. These can then be retrieved at a later date by profiling for possible future compliance purposes.
Risk types (3), (5), (6), (7), (8) and (11) will be recorded once for each version of a contractor return.
Risk types (1), (2), (4), (9), (10) and (12) will be recorded showing the total number of times that they occur on a version of a contractor return.