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HMRC internal manual

Construction Industry Scheme Reform Manual

Deductions: SA subcontractors: Partnership CIS deductions

CISR75600 Action guide contents

CIS deductions made from an ‘ordinary’ or a ‘limited liability’ partnership are claimed on the partnership Self-Assessment return. This return will then allocate the CIS deductions as decided between the various partners in the business.

Where the partner is an individual, they will claim their share of the partnership CIS deductions on the partnership page, completed as part of their own personal Self-Assessment return and credit for their share of the partnership CIS deductions will then be given in their income tax calculation for the year of deduction.

Where the partner is a company, the only mechanism for claiming their share of the partnership CIS deductions is to off-set it against the PAYE/NICs they are due to pay to HMRC as an employer during the year of deduction. The company will also need to claim their share of the Partnership CIS deductions as part of the total CIS deductions that they have had deducted during the year on their employers annual return (form P35) for non-RTI years or monthly Employer Payment summary (EPS) returns for RTI years.