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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: CIS: in-year and end-of-year process: CIS returns and scheme activity

Expected CIS returns

In the majority of CIS active schemes we would expect the contractor to forward 12 CIS monthly returns in any deduction year for the period 6 April to 5 April. However, in some circumstances 12 returns are not expected; for example:

  • if the CIS scheme is set up part way through the year
  • a scheme where the inactive signal has been set during part of the year
  • where the exemption signal is set for a specific period
  • if a scheme merges or transfers during the year
  • if a scheme ceases during the year
  • the scheme is cancelled during the year.

CIS will then calculate which returns are expected; for example:

  • inactive signal set for months 1 - 6
  • returns expected - 6 (months 7 - 12 inclusive)
  • returns received - 6 (months 7 - 12 inclusive)
  • ‘Full CIS Charge’ status indicator to BROCS (for years prior to 2013-14)
  • for years following 2013-14, ETMP will show six separate CIS Return charges.

Transfers during the year (for years prior to 2013-14)

Where schemes are transferred during the year, the CIS charge figure will be sent by CIS to the scheme receiving the transfer for both the transfer from schemes and the transfer to schemes.

Merged scheme during the year (for years prior to 2013-14)

If a scheme merges during the Tax Year, CIS will aggregate the end of year deduction from each of the relevant references and send one total CIS charge to BROCS for the reference number currently open.

Ceased schemes prior to 2013-14

If a scheme ceases during the Tax Year, CIS will aggregate the end of year deductions up to the point of cessation and send the total CIS charge to BROCS.

Cancelled schemes prior to 2013-14

Where a scheme is cancelled during the Tax Year, no CIS end of year tax deduction figure is sent to BROCS.

For years following 2013-2014

ETMP is updated monthly with returns details from CISR.