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HMRC internal manual

Construction Industry Scheme Reform Manual

From
HM Revenue & Customs
Updated
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Procedures in NIC&EO PAYE Employer Office, Longbenton: orphan continuation sheets

Where a contractor sends continuation sheets without the associated return or identification to match that return to a contractor, RDC Netherton will send the continuation sheet to NIC&EO these sheets are known as ‘orphan’ continuation sheets. This area of work is clerical and will not be received through PEGA.

NIC&EO Longbenton will need to investigate whether the continuation sheet

  • is a correction to a previous submission – if so, NIC&EO Longbenton will need to make the necessary corrections using the ‘Correct Return Error’ function
  • belongs to a return already sent and processed at RDC Netherton – NIC&EO Longbenton will need to use the ‘Correct Return Error’ function to add the details
  • has been sent in error – once confirmed with the contractor it can be destroyed.

AO Reference, UTR and Period Ending are on the continuation sheet (or these details are later established)

Where an AO Reference, UTR and Period Ending are shown on the orphan continuation Sheet;
 

  • check to see if a return has already been captured for those details.

If a return has been captured for the month

  1. If the continuation sheet records subcontractors who are not on the captured return
     
  • use the ‘Correct Return Error’ function and add the orphan continuation sheet details to that return.
  1. If a return has been captured and the continuation sheet records subcontractors who are already on the captured return, you will need to consider whether the amounts shown are in addition to, or replace, the amounts recorded for these subcontractors. You should;
     
  • send a letter to the contractor (ORP1) saying you have received a continuation sheet on its own for the month, and that you propose to add the amounts shown to the amounts already recorded on the monthly return for that month unless you hear otherwise within 14 days. You should give the contractor a couple of examples of what this will mean for subcontractors shown on the return
  • BF the case for 14 days for any response from the contractor.

If there is no response, then you should
 

  • use the ‘Correct Return Error’ function and add the orphan continuation sheet details to that return.

If a return has not been captured for the month.

  1. You should;
     
  • send a letter to the contractor (ORP2) enclosing a blank return, the continuation sheet and a Netherton reply envelope saying you have received a continuation sheet on its own for the month, however as the return for the month has not been received the continuation sheet on it’s own cannot be accepted. Ask the contractor to send the completed return to Netherton in the envelope provided.
  • Make a note of your actions in CISR using ‘Record Contact’

AO Reference or UTR are known, but the period ending on the continuation sheet is not shown

  1. You should
     
  • send a letter to the contractor (ORP3) saying you have received a continuation sheet on its own for a month, and say that you propose to add the amounts shown to the last ‘effective’ return held unless you hear otherwise within 14 days
  • BF the case for 14 days for any response from the contractor.

If there is no response after 14 days, then you should
 

  • use the ‘Correct Return Error’ function and add the orphan continuation sheet details to the last ‘effective’ return held.

Contractor unknown but a verification number is present on the continuation sheet

Establish which contractor the continuation sheet belongs to by using the verification number. From the ‘Identify Customer’ window you should treat the case as an inbound paper contact and waive authentication. From the ‘CIS Main Menu’ window
 

  • select ‘View Customer’ from the menu for the appropriate subcontractor and you will see the ‘View CIS Customer’ window showing the registration details tab
  • select the ‘Designatory Details’ button and the Designatory Details window with additional tabs at the top of the window will be displayed
  • select the ‘Verification Details’ tab.

When you first view the ‘Verification Details’ window, the Select Contractor section will be the only one containing any entries. It will contain a list of all the contractors and their reference numbers who have verified the subcontractor.
 

  • select a contractor from the list.

The ‘Verifications’ field will now be populated with the verification number and the date the subcontractor was verified.
 

  • Compare the verification numbers for each of the contractors until a match is found.

Where a match is found
 

  • Proceed in accordance with either 1), 2), 3) or 4) as appropriate above.

Contractor unknown and no verification number is present on the continuation sheet

It may, in rare circumstances, be necessary to contact the subcontractor(s) shown on the continuation sheet to establish which contractors they worked for during the month shown on the continuation sheet. You may need to contact several subcontractors to find out which contractor they worked for during the month on the ‘orphan’ continuation sheet.
 

Examine CISR subcontractor records to find the same contractor for the subcontractors on the ‘orphan’ continuation sheet

Before you try and contact a subcontractor, you should use all other available avenues to try and find out the information. You should;
 

  • repeat the above process as if you had a verification number for the subcontractor.

When you have selected the ‘Verification Details’ tab you will see the ‘Verification Details’ window. The ‘Select Contractor’ section is the only one populated with a list of all the contractors and their reference numbers who have verified the subcontractor.
 

  • Make a note of the contractors who have verified the subcontractor
  • repeat the above process for several other subcontractors, if any, on the continuation sheet making a note of the contractors who have verified each of the subcontractors
  • compare the contractor details to see if the subcontractors have worked for the same contractor.

If they have, you should
 

  • send a letter (ORP4) to the contractor to find out if the continuation sheet belongs to their record.
  • BF the case for 14 days for any response from the contractor

If there is no response after 14 days proceed as in 6) below

Where the contractor confirms that the continuation sheet does belong to them, you need to;
 

  • determine what should be done with the continuation sheet as in 1), 2), 3) or4) as appropriate above.

If the continuation sheet does not belong to this contractor, you will need to;
 

* proceed as in 5) below.

Contact with subcontractors to try and find the same contractor for the subcontractors on the ‘orphan’ continuation sheet

  1. Having tried all other options, you are then only left with contacting subcontractor(s) shown on the ‘orphan’ continuation sheet to ascertain the contractor(s) they have worked for;
     
  • send a letter (ORP5) to several of the subcontractors to determine which contractor they were working for during the month on the ‘orphan’ continuation sheet

Where you establish the same contractor for these subcontractors;
 

  • send a letter (ORP4) to this contractor to establish if the continuation sheet belongs to their record
  • BF the case for 14 days for any response from the contractor

If there is no response after 14 days, then you should proceed as in 6) below

Where the contractor confirms that the continuation sheet does belong to them, you need to;
 

  • determine what should be done with the continuation sheet as in 1), 2), 3) or4) as appropriate above.

Where the contractor confirms that the continuation sheet does not belong to them, you will need to;
 

* proceed as in 6) below.

Unable to establish the contractor who owns the orphan continuation sheet

  1. If it is still not possible to establish the contractor who submitted the continuation sheet, you should
     
  • file the continuation sheet away in the date order that the orphan continuation sheet was received to await any possible response from the contractor who claims to have sent a continuation sheet on its own.