CISR73630 | Deductions: checking of deductions: failure to issue Payment and Deduction Statement (PDS)

| CISR73000 | Information contents | |—————————————————————————————————–|———————-|

Take the following action when you are notified by a subcontractor that they have received a payment under deduction and the contractor has failed to provide them with a Payment and Deduction Statement (PDS).

The information that follows assumes that

• either the contractor’s monthly return for the relevant period has not been submitted to HMRC (thus is overdue), or

• the return has been received by HMRC but the subcontractor in question has not been included on that return.

• Advise the subcontractor that they are entitled to receive a PDS in support of the payment and deduction suffered, and that they should go back to the contractor and obtain a PDS in order that credit may be given for the deduction.

Where the subcontractor claims that they have already taken the above action and, in spite of a further approach to the contractor they are still unable to obtain the PDS;

• Ask the subcontractor to provide full details of the payments made to them to include:

• contractor’s full name and address (and employer’s tax reference if known)

• date of the payment(s) concerned or the tax month(s) within which they were made.

• gross amounts paid and any amounts to be deducted for materials (excluding VAT)

• the cost of any materials supplied by the subcontractor for the tax month

• amounts deducted from the payments

Then proceed as follows as set out in CISR74030