CISR65200 | Late Return Automatic Penalties: Contractor has ceased to trade or permanently ceased to engage subcontractors and has outstanding monthly returns

| CISR65600 | Action Guide contents | |—————————————————————————————————–|———————–|

Where a contractor has ceased trading, or permanently ceased to engage subcontractors, and there are missing contractor monthly returns, CIS will continue to issue penalties each month for those returns for the period(s) up until the date the Contractor record has been ceased or changed to a ‘P’ type scheme on EBS and this change has flowed across to CIS.

This could result in penalties being issued for returns where, in fact, the contractor had made no payments to subcontractors in the latter months that they traded. To prevent the issue of unnecessary penalties the CIS Centre at Newcastle should take the action as set out below;

Companies (where trading has ceased)

Follow the action guide at CISR65690.

Companies (where they now have employees only)

Follow the action guide at CISR65700.

Individuals and Partnerships (where either trading has ceased, or they now have employees only)

Follow the action guide at CISR65700.

Taking this action this will mean that the End of Year (EOY) figure to go across to BROCS after the end of the tax year (for non RTI years), will become a ‘Full’, leading to fewer exceptions where CISR only holds a ‘Provisional’ figure for the End of Year totals.

From 6 April 2013 CIS Monthly Return charges will flow to the new Enterprise Tax Management Platform (ETMP) by an overnight process, so a CIS EOY figure will no longer exist from this date.