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HMRC internal manual

Construction Industry Scheme Reform Manual

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HM Revenue & Customs
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Deductions: checking of deductions: checking the payment and deduction statement against the CIS record

CISR73000 Information contents
   

Checking the Payment and Deduction Statement against the CIS record

This action guide explains the steps you should take to check a Payment and Deduction Statement (PDS) submitted by a subcontractor. Checking a PDS is basically a matter of comparing the submitted PDS against the CIS system record of the contractor’s monthly return details for the same period.

To gain access to ‘Contractor Scheme Returns’ from where you will be able to view the corresponding monthly return submitted by the contractor (to enable you to check the details contained within the PDS) you will need first to complete the authentication process successfully (see CISR22000).

Steps are set out below to illustrate the following:

  • Successful check
  • Unsuccessful check - details do not match
  • Unsuccessful check - subcontractor not shown on CIS300.
  • Contractor’s monthly return not received

Successful check

  1. Open the CIS system to obtain the Identify Customer window.
  2. Enter the Employer Reference (taken from the PDS) in the relevant field. (If the PDS does not contain this information you should trace this to enable you to continue).
  3. Select ‘Internal enquiry’ from the ‘Contact type’. (The ‘Channel type’ will now contain the entry N/A, allowing you to bypass authentication).
  4. Select the [OK] tab at the bottom of the window. This will take you to the CIS Main Menu window.
  5. Select View CIS Customer from the Menu. You will now be in the ‘Scheme Details’ window and basic information relating to the contractor scheme selected will be displayed. Along the top of the window is the selection tab ‘Returns’.
  6. Select the tab ‘Returns’, this window is divided into two panels. Within the upper panel - (Return Periods), a period will be displayed which will be six months back from the current month. All ‘Effective’ monthly returns captured will be displayed falling within that six month period.
  7. To view earlier monthly returns select the drop down menu alongside the entry ‘Period Starting’ and ‘Period Ending’ to display the monthly returns for the period that you require.
  8. Having made your selection place a tick in the check box to the left of the required return and select the tab ‘Return Details’ at the bottom of the window to enable you to view the entries on the selected Return.
  9. You are now in the ‘Return Details’ window which is divided into 3 panels, ‘Return Details’ and ‘Totals for Return’ contain key information relevant to the Return being viewed. The bottom panel ‘Subcontractor Payments’ contains a list of all subcontractors included on the return and paid in that month. From those listed locate the subcontractor whose PDS you wish to check.
  • Check the following details on the PDS submitted by the subcontractor against those on the ‘Subcontractor Payments’ panel

    • UTR
    • NINO/CRN (The CRN on the PDS may include 2 letters before a series of numbers however the CRN shown on CISR will be without the 2 letters. For example the PDS may show CL0383491 but the system will show 0383491. You should ignore the letters and match only the numbers).
    • Verification No.
    • Total payment for the month
    • Cost of any materials in the month
    • Total tax deducted in that month.

It may be necessary to view the history of the return you are currently looking at as there may have been amendments made to that return. To do this;

  • select ‘Back’ to return to the ‘Scheme Returns’ window
  • then select the ‘all’ radio button alongside ‘status’ at the top of the return periods window

This will now reveal any ‘superseded’ returns for the period you have already selected, and you may now compare the PDS with what the ‘superseded’ return may show in conjunction with what the ‘effective’ return now shows.

Record the details in the subcontractor’s papers by obtaining a screen print of the ‘Return Details’ window. This is to ensure that any later claim does not result in credit or repayment where this has already been given.

Unsuccessful check - details do not match

  • Follow the steps shown above at 1) to 9) inclusive under ‘successful check’ above.

If the PDS cannot be confirmed because the amounts shown on the CIS300 monthly return are insufficient you should:

Self-Assessment cases

  • Allow credit to the subcontractor for the amount claimed on the Self-Assessment return, unless;

A compliance officer has opened a Section 9A Enquiry into the return for which the claim for CIS deductions has been made, in which case;

  • the compliance officer may ask the subcontractor to provide Bank statements to confirm the payments made according to the PDS’s

If the Bank statements coupled with the PDS’s confirm the entry made on the Self Assessment return;

  • the compliance officer may allow the claim as made

If the Bank statements coupled with the PDS’s only partially back up the entry made on the Self Assessment return;

  • the compliance officer should restrict the claim to what can be evidenced by way of Bank statements and PDS’s
  • Forward details of the CIS deduction(s) that you have now given credit for that do not appear on the contractor’s monthly return, (or where the contractors monthly return is outstanding) using the RIS/CIS Referral stencil available on the CIS Intranet site together with any evidence the subcontractor has supplied.

Company cases

  • Follow the guidance set out in the PAYE Manual at PAYE53012

Unsuccessful check - subcontractor not shown on CIS300

  • Follow the steps shown above at 1) to 9) inclusive under ‘successful check’ above.

If the deductions cannot be confirmed because the subcontractor is not shown on the CIS300 you should:

Self Assessment cases

Follow the guidance for Self-Assessment cases as under ‘Unsuccessful check - details do not match’ above.

Company cases

  • Follow the guidance set out in the PAYE Manual at PAYE53012

Unsuccessful check - the contractors monthly return (CIS300) has not been received

  • Follow the steps shown above at 1) to 9) inclusive under ‘successful check’ above.

If the deductions cannot be confirmed because the contractor’s monthly return(s) (CIS300) has not been received you should:

Self Assessment cases

Follow the guidance for Self-Assessment cases as under ‘Unsuccessful check - details do not match’ above.

Company cases

  • Follow the guidance set out in the PAYE Manual at PAYE53012