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HMRC internal manual

Construction Industry Scheme Reform Manual

Monthly return: errors on returns: ‘Inactivity’ claimed on the return that you wish to amend

CISR66000 Information contents

Where the contractor’s return that you wish to amend includes a claim for a period of ‘Inactivity’, and that period of ‘Inactivity has not yet expired (see CISR66060), you will need to take special action. Before using the ‘Correct Error on Return’ function;

  • check ‘View CIS Customer’ to see whether the status of the contractor scheme is shown as ‘Inactive’.

If it is shown as ‘Inactive’;

  • check whether the return you wish to amend includes a request for the period of ‘Inactivity’.

To do this;

  • select the ‘Inhibitions’ tab in View CIS customer
  • select the tax year which includes the monthly return you wish to amend

If the return you wish to amend is the one immediately prior to the start date of the current ‘Inactive’ period, you will need to take the following action;

  • for each of the return months for which the period of ‘Inactivity’ was originally set

    • set penalty inhibitions for all penalty instances for that return, and
    • set return exemptions for each of these months.

Once this action has been taken you may then go ahead and amend the return as usual using the function ‘Correct error on return’.

Where the end of the ‘Inactivity’ period requested by the return that you wish to amend is already in the past, you may amend the return as normal without setting penalty inhibitions and return exemptions for the period of ‘Inactivity’ as detailed above.

Contact Centre Staff

Contact Centre Staff who wish to use the ‘Correct Error on Return’ function in these particular circumstances should;

  • send a WAM to the CIS Centre Newry headed ‘Newry - CIS Inactive’, and
  • ask Newry to make the necessary corrections to the returns following the guidance detailed above.