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Construction Industry Scheme Reform Manual

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HM Revenue & Customs
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Worklists: Action Guides: Process Subcontractor Details exceptions

CISR95000 Information contents
   

You will come across cases where, following the scanning of the contractor monthly return, the scanner has been unable to read some or all of the monetary fields or there are other missing entries such as the subcontractor’s name or UTR. These cases are generated on to the ‘Process Subcontractor Details’ exceptions worklist. An Information Guide on this subject can be found at CISR92120. The action you should take on these cases is as follows for each of the scenarios below.

Gross payment not shown or unreadable but deduction is shown and no materials are present

  • You should assume that the gross figure is 100/20 of the deduction shown. Amend the return using the function ‘Correct Return Error’, and then issue an advisory letter PS1 to the contractor informing them of the action taken. You should make a note of the action taken using ‘Record Contact’, and then complete the worklist entry in PEGA.

Gross payment not shown or unreadable but deduction is shown and a figure for materials is present:

  • You should first check that the deduction shown is not 20% of the materials entered. If it is, assume that the contractor has incorrectly shown the gross payment in the materials box in error. You should use the function ‘Correct Return Error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, Make a note of the action taken using ‘Record Contact’’, and then complete the worklist entry in PEGA.
  • If the figure is not 20% of the materials shown, you should assume that the gross figure is 100/20 of the deduction shown plus the cost of materials entered. You should use the function ‘Correct Return error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, you should make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Gross payment unreadable and no deduction shown

  • Firstly, send the contractor a letter PS2 asking what the unreadable entries on the contractor return should be, and BF the Work Item in PEGA for 14 days.
  • If there is no response within 14 days call for a copy of the scanned return from Netherton to check what is actually shown on the monthly return and again place the Work Item on a 14 day BF.
  • Once the return is received, if the figures are readable you should use the function ‘Correct Return Error’ to amend the return to the figure shown on the scanned copy of the return. You should then issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.
  • If the return received from Netherton is still unreadable you should use the function ‘Correct Return Error’ to amend the return to Nil in the payment field and you should enter the words ‘Can’t read’ in the NINO field and ‘Payment’ in the CRN field, this will then read ‘Can’t read payment’ alongside the entry for the subcontractor. You should then make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Materials element unreadable and no deduction shown on the return

  • Check the payment status of the subcontractor to confirm that they were on gross payment status at the time the payment was made. If they were, you should assume that the materials element is Nil. You should issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Materials element unreadable and a deduction is shown on the return

  • Multiply the deduction shown by 100/20. The difference between this figure and the gross figure shown should be the materials element. You should use the function ‘Correct Return error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Materials element exceeds the gross payment and no deduction made

  • Restrict the amount of the materials shown to the amount of the gross payment. You should use the function ‘Correct Return Error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Materials element exceeds the gross payment and a deduction is shown

  • Multiply the deduction shown by 100/20. If this figure is less than the gross figure restrict the amount of the materials shown to the difference between these figures. If, however, after multiplying the deduction the figure is equal to or more than the gross figure paid then you should restrict the materials element to Nil. You should use the function ‘Correct Return Error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Materials figures only shown with nothing in the Gross payment or deduction fields

  • Enter in the gross payment field the same figure as is shown in the materials field, for example, where Materials of £100 only shown, amend the Return to show £100 in the gross payment field and £100 in the materials field. You should use the function ‘Correct Return Error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Deduction field unreadable - Net payment status

  • Check the payment status of the subcontractor at the time the payment was made. If this was net, work out the deduction at 20% of the gross payment, or where materials are shown 20% of the gross payment less the cost of materials. You should use the function ‘Correct Return Error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Deduction field unreadable - Gross payment status

  • Check the payment status of the subcontractor at the time the payment was made. If this was gross, assume no deduction was made. You should use the function ‘Correct Return Error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Minus deduction shown

  • Reduce the deduction to Nil, you should use the function ‘Correct Return Error’ to amend the return. Then issue an advisory letter PS3 to the contractor advising that minus entries on a monthly return cannot be made and they will need to go back to the return affected by the amendment and amend the entries for that return. You should make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Gross payment, materials and deduction fields all unreadable

  • Firstly, send the contractor a letter PS2 asking what the unreadable entries on the contractor return should be, and BF the Work Item in PEGA for 14 days.
  • If there is no response within 14 days call for a copy of the scanned return from Netherton to check what is actually shown on the monthly return and put the Work Item on a 14 day BF.
  • Once the return is received, if the figures are readable use the function ‘Correct Return Error’ to amend the return to the figure on the scanned copy. You should issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Subcontractors name and/or UTR are missing from the return, but payment, (materials) and deduction shown.

  • Check PEGA History to see whether the contractor has done this before
  • Issue a letter to the contractor (PS2) requesting the missing details.
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA but do not put the case on BF for a reply.

 

  • Once a response is received from the contractor to your enquiry, you should use the function ‘Correct Return error’ to amend the return to the details now provided by the contractor.
  • Where the contractor does not respond to the PS2 letter, use the function ‘Correct Return Error’ and in the name field enter ‘A N Other’ and in the UTR field enter the UTR as 1234567890. Make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

Subcontractors name and/or UTR are shown, but payment, (materials) and deduction are all missing from the return or these fields are completed with ‘X’s.

  • Assume that the payments, materials and deductions for the subcontractor are all Nil. You should use the function ‘Correct Return Error’ to amend the return, and then issue an advisory letter PS1 to the contractor informing them of the action taken, make a note of the action taken using ‘Record Contact’ and complete the worklist entry in PEGA.

This should cover most of the scenarios you come across in your day to day work, but if you have one that is not covered by this guidance, you should seek advice firstly from the CIS Business helpdesk (CISR97010), or make a submission to the CIS Advisory Team (CISR97030) for advice.