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DMBM524710 | Debt and return pursuit: CIS: recording Nil payment declarations on BROCS

From HM Revenue & Customs · Debt Management and Banking Manual

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If you are advised by a contractor/employer there is no payment due for a particular month/period and the scheme has a SC element always:

  • check the contractor monthly returns on the CIS computer system

  • ensure that monthly returns for that period have:

  • been received

  • show nil deductions from subcontractors.

CIS monthly returns show nil

If CIS monthly returns show nil deductions from subcontractors, no further action is required.

CIS monthly returns outstanding

Prior to April 2015, contractors must make nil returns if they make no payments to subcontractors in the month under CIS regulations.

From 6 April 2015 contractors that have not made any payments under a construction contract are no longer obliged to submit a nil return to HMRC. After 6 April 2015, if contractors do not make any payments to subcontractors in a tax month they must still notify HMRC in order to avoid a CIS late-filing penalty notice and a CIS-specified charge. Ask the contractor to file a nil return on a voluntary basis or they can call the CIS Helpline on 0300 200 3210 to let us know that no return is due.

If CIS monthly returns are outstanding on CIS/IDMS:

  • advise the contractor that CIS returns should be:

  • made by the due date of the 19th following the end of each tax month and that penalties will be raised if a return is not received or received late

  • submitted using one of the methods shown at DMBM524020.

If you are advised by a contractor/employer there is no payment due for a particular month/period and the scheme has a PAYE element always:

  • review the CIS returns as above

  • advise the contractor to file a FPS if they paid employees but nil was due or an EPS if they have not paid any employees.

CIS return for current month

If the contractor advises that a CIS nil monthly return is appropriate for the current month:

  • ask the contractor to submit the CIS Nil return immediately or call the CIS Helpline on 0300 200 3210

  • warn the contractor that all late returns are subject to penalties (penalties charged on periods where is nil is subsequently received will be automatically cancelled).