Tips to reclaim CIS

7 Top tips for Companies whom make reclaims under CIS

1. Ensure the company’s Agent is authorised specifically for PAYE to act on its behalf for CIS repayments. Form 64-8 is used for this purpose and this can be downloaded from the HMRC website and sent to the National Insurance Contributions and Employer Office, HM Revenue and Customs, BX9 1AN. Work with your agent to ensure this is in place.

2. Ensure the Unique Taxpayer Reference (UTR) and the company subcontractor’s name are correct on all documents. This is essential to ensure prompt processing of refunds with the HMRC. An incorrect UTR can lead to lots of problems.

3. Check that all the company’s Payment and Deduction Statements (“PDS”) that HMRC have been requested from the respective contractor. We recommend this is done monthly. The PDS is “GOLD DUST”, keep these documents SAFE and filed. Upon receipt ensure they are for the correct the period and the amounts match those in the paid in the bank. (Note: The tax year runs from 6 April in one year to 5 April the following year).

4. Check that the CIS deductions taken from the company’s subcontractors are correct and have been reported correctly on the monthly returns. It is good practice to make payments before the 5th of the following month.

5. Ensure the company has no outstanding returns (CIS300) in its capacity as a contractor within CIS. In order to reclaim any CIS owed by the HMRC, your CIS300 returns need to be up to date. HMRC will no process a refund until all the CIS300 have been filed.

6. Ensure that the final Employer Payment Summary (EPS) showing CIS deductions taken from the company’s payments, has already been submitted.

7. Submit any information requested within the timescale specified by HMRC, such as following receipt of a ‘CIS suffered letter’ and that you have included everything that HMRC has requested. Claims for repayment should be made in writing, and sent to National Insurance Contributions and Employer Office, HM Revenue and Customs, BX9 1BX.