CIS: Verification procedures in DMB: Background and time limits
DMB will receive submissions from the CIT or the subcontractor’s processing office where the contractor is registered on CIS but it has not been possible to verify payments and deductions claimed by a subcontractor by reference to either a payment and deduction statement and/or CIS300 (monthly return) entry, and
- the contractor has failed to respond to their enquiries, or
- the contractor has failed to comply with their requests for the missing CIS300 or payment and deduction statements, or
- the contractor has become insolvent.
The subcontractor’s processing office will submit a case directly to a DTO where fresh evidence of payment and deductions comes to light following an earlier unsuccessful claim, or in other isolated instances such as insolvency.
You will have to decide from information available in the case papers together with any further information available from the contractor whether to allow credit for the deductions shown on the payment and deduction statement in the contractor’s SA calculation.
If you have not resolved the verification problem with the contractor within three months of receiving the case papers should refer the case to the contractor’s processing office.
This will be a question of judgement, and where you have established contact and believe the contractor will pay any liability then they should continue pursuit of the liability and any returns. There may also receive more than one subcontractor’s details to verify with the same contractor.