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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: CIS: cancelled scheme one year only

When considering cancelling a scheme for one year only:

  • follow existing procedures for the PAYE element
  • check the contractor monthly returns on the CIS computer system
  • ensure that all returns for the year reflect nil tax deducted from subcontractors.

If the CIS returns show no subcontractor activity (that is the contractor has not engaged or made any payment to a subcontractor, whether tax was deducted or not) you can follow existing guidance and where appropriate follow the procedures for cancelling the scheme one year only.

If the CIS returns show that the contractor has made any payments to subcontractors (whether tax was deducted or not) you cannot cancel the scheme. Follow existing procedures for pursuit of the outstanding PAYE return.

When a PAYE scheme is COYO the cancellation will neither:

  • feed through to the CIS computer system
  • have any impact on CIS returns which will continue to be due on a monthly basis.