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HMRC internal manual

Construction Industry Scheme Reform Manual

Monthly Returns and the End of Year (EOY) Process: Setting a Return Period Exemption

CISR69000 Information contents

This Action Guide outlines the process involved when an operator wishes to set a return period as exempt from filing a return. To access this functionality the user will need to hold the CISR Penalty Administrator, Compliance Manager, CISR Process Manager or Pursuit Manager roles.

You will need also to consider whether penalty inhibitions should be set when setting a return exemption as the system will continue to issue penalties in respect of the outstanding return even though that return has been set as no longer due.

Authentication is not a requirement to access this function. Therefore, from the Identify Customer window enter the UTR/AO reference and ‘Internal Enquiry’ as the ‘Contact’ then select [OK]. From the CIS Main Menu window;

  • Select the required contractor scheme.
  • Select ‘Maintain Return Period Exemption’ function from the menu.

The window now visible ‘Tax Year Summary’ contains a list box with the ‘start’ and ‘end’ dates of the current tax year and up to six preceding tax years (the most recent tax year that will appear here is 2012-13 as that is the last tax year for which there was a CIS EOY process). To the left of this window are the contractor’s name, UTR and NINO, with the scheme name and AO reference recorded along the top.

  • Identify the tax year appropriate to the period that you wish to set the exemption for, and select either the ‘Start’ or ‘End’ date for that year. This selection will take you into the ‘Return Period Exemptions for Tax Year’ window.

For the tax year selected each return period is shown with details of any exemptions previously set or unset.

  • To set an exemption, select the checkbox next to the chosen return period. You can select more than one return period in any tax year to set exemptions in one session, as long as the ‘exemption category’ and ‘reason for the exemption’ are the same.
  • Select the ‘Update Exemptions’ button at the bottom of the widow. This will take you into the ‘Update Return Period Exemptions’ window.
  • The selected return periods will now be shown at the top of this window. Complete the ‘Exemption Category’ field by making a selection from the drop down menu, this field must be completed. The selections are;

    EOY Finalisation - Where the tax year concerned is for 2012-13 or earlier and the request to set the exemption will have come from the BROCS EOY Process, i.e. because BROCS has not been able to balance the deductions from CIS returns with payments received.

    Return Pursuit Ceased - Where DMB wish to cease pursuit of an outstanding return

    Compliance Settlement - The settlement includes CIS deductions and manual penalties, (any outstanding returns will have been swept up in the global settlement).

    Other - Where none of the above selections apply.

  • Enter the reason for the exemption in the free-format ‘Reason’ field. A maximum of 50 characters can be entered within a session, this field must be completed.
  • Select the ‘Set Exemption’ button at the bottom of the window. You will be taken back to the ‘Return Period Exemptions for Tax Year’ window where details of the changes that have just been entered will be reflected.
  • If you are happy with the changes made select the [OK] button at the bottom of the window at which time the changes made will be committed to the system.

The system will now determine whether it is necessary to

Send an update to DMB cancelling the pursuit of any returns for which exemptions have just been set.

Submit an amended CIS EOY figure and status to BROCS for the scheme where all of the return periods for the tax year are now finalised (and the tax year concerned is for 2012-13 or earlier years).
  • Selecting Back - takes you back to the ‘Return Period Exemptions for Tax Year’ window (with any changes made being lost) so you can look at the case again. This will also to allow you to set Return Exemptions for other tax years if you wish in the same session.
  • Cancel - Returns you to the CIS Main Menu, with all data entered being lost.