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HMRC internal manual

Construction Industry Scheme Reform Manual

Monthly return: errors on returns: introduction

CISR66600 Action guide contents

When a return has been logged and captured and successfully matched to a UTR, corresponding AO reference and a valid period, it is known as an ‘effective’ return.

However, contractors will sometimes make errors on their returns or omit certain information from them.

If they spot this before the return has been sent to us, they may simply rectify the error by completing a new form CIS300, or by revising the information they have entered on-line.

But if the error is spotted after a return has been sent in, logged and captured, the error will need to be corrected by HMRC. This can be done in a number of ways. A contractor could

  • send in a new (corrected) return
  • write in with the correct details
  • telephone the CIS helpline
  • make an appointment for a face to face meeting at a Network Enquiry Centre (EC)

The chapters that follow provide information on the problems associated with this and how you can overcome them.

Important Notes

All telephone requests to correct an error on a return should be referred to the CIS helpline on 0300 200 3210. The reason for this is that only calls to HMRC contact centres are recorded. This means that a transcript of the call may be obtained in the event that there is any dispute concerning what was said.

You may correct errors on returns relating to the current tax year and the previous 6 tax years (CY-6). However, before correcting a return you should first examine the ‘View Customer’ screen. This is so as to check whether certain signals are present on the CIS record.

Amendments to multiples of 50 (or more) subcontractors on a return

Where a return is made late up to 28th October 2011 and has attracted one or more £100 fixed penalties under TMA70/s98A and an amendment is processed using ‘Correct error on return’ adding subcontractors to the return which now takes the return over one (or more) multiples of 50 subcontractors, then providing that amendment is made before 29th October 2011 an increase in the penalty under TMA70/s98A for that return will be issued. Where the amendment is made on 29th October 2011 or later, then the penalty under TMA70/S98A will not be increased from the sum already issued.

If however the amendment to a return made late up to 28th October 2011 reduces the number of subcontractors on the return so that it now falls below over one (or more) multiples of 50 subcontractors, then irrespective of when that amendment is made the amount of the penalty is not altered automatically, and it will be up to the contractor to appeal against the sum of that penalty. Once the appeal is determined the amount of the TMA70/S98A penalty can still be reduced by the CIS system even if this takes place after 28th October 2011

Employer Compliance Review (ECR signal)

If the ‘ECR’ signal is shown this is an indicator that any corrections to return information should be notified to the Employer Compliance Officer or, as appropriate, Construction Industry Team (CIT). Where this signal is present you can correct the return. However, it is important to quickly advise the relevant officer that you have done so so that he or she is aware what changes have been made to the return.

Details of the appropriate unit can be found in the ‘scheme details’ window.

Remember, we can not refuse to accept contractor initiated amendments to returns. Therefore, this signal should be seen as a flag to pass the information on.

Civil and Criminal investigations (Under Investigation signal)

If the ‘Under Investigation’ signal is shown you must not correct the return. Nor should any repayments be made. Instead, any corrections to the return should promptly be notified to the investigating officer. This is so that he or she is quickly aware what alterations the contractor is seeking to make to their return.

Further details about the investigation can be found in the ‘Supplementary Details’ window.

Remember, we can not refuse to accept contractor initiated amendments to returns. Therefore, the ‘Under Investigation’ signal is a flag to notify the investigating officer and not to make the amendments yourself.