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HMRC internal manual

Debt Management and Banking Manual

CIS: Verifying procedures in DMB: Contractor insolvent

Where the contractor has become insolvent, the DMB Office should approach the appointed Insolvency Practitioner to obtain any missing CIS300 returns, where appropriate.

Case referred from contractor’s processing office

Where the case is submitted direct from the subcontractor’s processing office and any missing CIS300 returns are obtained, the DTO should follow the guidance at DMBM524420.

Where the records are unavailable or inconclusive, the DTO should refer the case papers to the contractor’s processing office for them to consider whether credit can be given based on any evidence of payment and deductions held.

Case referred from CIT

Where the CIT referred the case to the DTO with no accompanying evidence of payments and deductions from the subcontractor, they should return the case papers direct to the subcontractor’s processing office advising that

  • they have been unable to verify payments and deductions against the records held by the appointed insolvency practitioner,
  • in the absence of evidence of payment and deductions, no credit can be authorised, and
  • if evidence is subsequently obtained, the papers should be referred directly to the contractor’s processing office to consider whether credit can be authorised based on the evidence provided.

The DTO should send a copy of the report to both the contractor’s processing office and the CIT for information purposes.