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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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CIS: Verification procedures in DMB: 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, and
  • 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, and
  • advise the subcontractor’s processing office of the outcome and
  • 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
  • obtain a CIS300/(CS)/(Man) for any outstanding periods, together with any payments due, and
  • 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
  • advise the CIS Unit of the outcome of the call and pass on any CIS300/(CS)/(Man) to RDC Netherton, for capture onto CIS
  • 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.