CIS Repayment Claims – 10 Top Tips

15th August 2017


HMRC have recently published their ’10 Top Tips for CIS repayment Claims’ for use by companies when completing their repayment claims. Given that any missing information can potentially delay the issue of any refund arising the intention is that this should be used as a checklist to follow when submitting a CIS Repayment claim. The 10 Top Tips are as follows:

• Ensure the company’s Agent is authorised specifically for PAYE to act on its behalf for CIS repayments.

• Double check that the Unique Taxpayer Reference (UTR) and the company subcontractor’s name are correct on all documents.

• Check all the company’s Payment and Deduction Statements that HMRC has requested to process the claim are submitted and that they are for the correct period.

• If the company was incorporated during the year, ensure that the claim for repayment is only for deductions taken from the company’s payments and not any for periods before incorporation.

• Check that the CIS deductions taken from the company’s subcontractors are correct and have been reported correctly on the monthly returns.

• Check that the company has no outstanding returns (CIS300) in its capacity as a contractor within CIS.

• Ensure that form P35 – or the final Employer Payment Summary (EPS) under Real Time Information (RTI), showing CIS deductions taken from the company’s payments, has already been submitted.

• Submit any information requested within the timescale specified by HMRC, such as following receipt of a ‘CIS suffered letter’ and that everything is included that HMRC has requested.

• Where there are overpayments that do not relate to CIS, verify how these have arisen by providing documentary evidence to HMRC, along with the company’s claim for repayment.

• Where the company has ceased trading, remember to send in all outstanding returns for the subcontractors.

Further advice and guidance on CIS returns, payments and deductions can be found here on the HMRC website. The leaflet ‘Repayment claims for limited company subcontractors’ published in April 2014 can be viewed here. The Agent Account Managers channel can help you to check the status/progress of repayments, information on this facility can be found here.

Any repayment claims should be sent to the usual address at:

National Insurance Contributions and Employer Office, HM Revenue and Customs,
United Kingdom

If you would like some assistance in this area please contact us on 0141 848 7474 or email us and we shall be glad to help you with this process.