CIS Verification

19th July 2016

CIS: Why are our subcontractors now showing as unverified?
This is a phrase undoubtedly being heard in the offices of construction industry firms nationwide as HMRC appear to be having some CIS online service verification issues.  Contractors looking to complete their latest monthly return may be logging on to their online services to find that many of their subcontractors are required to be verified, despite having been so before.  H M Revenue & Customs have issued a statement on their website relating to this issue, and a few others, regarding CIS.  It explains that, where “subcontractors’ verification details were obtained online, the HMRC CIS online service is removing those details when they become 2 years old”.  What do HMRC advise you do? They say simply verify once more the subcontractors that you still use.  It’s important therefore that those engaging subcontractors in the construction industry log on to their online services sooner rather than later to ensure they can re-verify the relevant subcontractors in time to make their next monthly submission.

A further issue identified is where contractors may be encountering “timeout” errors when trying to use the online service.  HMRC state that this is due to some contractors setting up more subcontractors on the service than it was designed for. HMRC reminds contractors that the CIS online service was designed for those who deal with a small number of subcontractors and for whom it wouldn’t be realistic or cost-effective to invest in third party software.  If you are encountering this issue the advice is to reduce the size of the subcontractor list by deleting those subcontractors who you no longer use.  Failing this, contractors are advised to invest in suitable third party software that can handle subcontractor verifications and monthly returns.



 
Other items in Blogs
 
Vanessa Pearson
18th June 2018 Public Sector contractor wins IR35 case

HMRC have lost a second IR35 case this year, and their second case against the same contractor, putting into doubt their own understanding of the IR35 rules. Ian Wells, director of personal service company Jensal Software Limited provided his services to the Department of Work and Pensions via a recruitment agency during 2012 and 2013.…

Read More »

Jeannette Hume
18th June 2018 EIS Money: Beware how you spend it!

Tech companies that are financed through EIS equity cash will be aware that this ‘tax wrapper’ can be super-generous, but that many criteria have to be met to ensure eligibility. One of these long standing criteria has been that the company must use the proceeds (up to £5m pa) raised: In either a qualifying trade…

Read More »

Thomas Carter
15th June 2018 Making Tax Digital, VAT and newly registered businesses

All VAT registered businesses with a turnover over the current VAT registration threshold of £85,000 will be required to comply with the Making Tax Digital (MTD) record keeping and reporting requirements for VAT periods which start on and after 1st April 2019. Where a business is VAT registered but has turnover under £85,000 at April…

Read More »

Jodie Tarbin
11th June 2018 Changes ahead for CGT payment

HM Revenue & Customs is proposing, in less than two years’ time, to rewrite the rules around Capital Gains Tax, CGT, following the disposal of a residential property. The current timescale for payment is going to be slashed to 30-days. From April 6 2020, a payment-on-account of CGT, will be required following the sale of…

Read More »

Richard Alecock
4th June 2018 Property Allowance

The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property. The property allowance applies to relevant property income which includes: Both UK and overseas property businesses. Both commercial and residential letting (but not rent-a-room businesses – see below).Where property income exceeds £1,000, the legislation…

Read More »

Victor Courdelle
4th June 2018 Whiting & Partners Now Xero Platinum Champion Partner

We are very proud to announce that on 23 May 2018 we achieved Xero Platinum Champion Partner status, joining a select group of 80 other firms Nationwide.  The hard work of all Partners and Staff in reaching this milestone is a credit to each individual and the Firm as a whole. Many of our clients…

Read More »