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HMRC internal manual

Debt Management and Banking Manual

CIS: verification procedures in DM: contractor disputes amount of payment / deductions

Where the contractor disputes the amount of payments and/or deductions shown on the subcontractor’s Payment and Deduction Statement or other evidence of deductions:

  • obtain the contractor’s reasons in writing for disputing the figures
  • ask for the contractor’s own evidence such as cash/wages book information, showing actual payments (and deductions, if appropriate) made to the subcontractor during the relevant period.

Contractor’s explanation satisfactory

If you are satisfied with the contractor’s written explanation:

  • arrange for the return details to be amended on the system, where necessary
  • advise the CIS Unit of the outcome of their enquiries
  • advise the subcontractor’s processing office of the outcome
  • confirm the amount of credit for any deductions not in dispute.

Contractor’s explanation not satisfactory

If you are not satisfied with the contractor’s explanation:

  • obtain the contractor’s written confirmation in respect of any amounts not in dispute, which the contractor has not already returned to HMRC
  • ensure they file CIS 3000 electronically
  • advise the contractor that they are accepting the documents without prejudice and will be referring the papers to the associated CIT and further enquiries may follow
  • refer the papers to the associated CIT for further investigation
  • advise the subcontractor’s processing office of the outcome confirming what credit can be given.