CISR69060 - Monthly Returns and the End of Year (EOY) Process: Insolvencies

| CISR69600 | Action Guide contents | |—————————————————————————————————–|———————–|

Where a contractor has been made insolvent and there is evidence that

  • they made deductions from payments to subcontractors, or
  • had paid over CIS deductions to HMRC

the contractor is still required to submit monthly returns (CIS300) for the relevant period(s). However, there will be instances where it will be impossible to obtain the completed contractor returns either from the contractor or from the Trustee in Bankruptcy, Administrator or Liquidator for the contractor.

Where you have exhausted all possible avenues to try and get the relevant monthly returns completed, if a return is not processed and a charge is not created in CIS in respect of the deductions made by the contractor;

  • for years up to and including 2012-13 the end of year process was not able to finalise the year concerned and a ‘Provisional’ EOY figure would have been sent to BROCS.

For CIS to send a ‘final’ end of year figure across BROCS there had to be ‘effective’ contractor returns captured for the month(s) the contractor was active during the year or you have set a ‘Return Exemption’ (See CISR69050) or ‘Inactivity’ (See CISR67000) for the other month(s) concerned.

From the 2013-14 tax year there in no End of Year (EOY) process and the CIS charge (being the sum of the deductions made by the contractor) is sent across to ETMP by an overnight process creating the CIS charge for the month concerned.

The action guide at CISR69640 details the actions you should take for these insolvency cases.