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contractor believes the information to be correct, they are asked to call the CIS Helpline for further advice.
From 6 April 2017, it will be mandatory to undertake all verifications online. Until that date, however, the CIS Helpline will still accept verification requests by telephone. In the meantime, the online verification process has been improved to give contractors better results when they attempt to verify subcontractors online and the information they have used is not entirely correct. For example, where a contractor is trying to verify a subcontractor with a spelling error in the subcontractor’s name, CISR will be able to recognise this and return the correct subcontractor details. New CISR verification functionality will include searches against the subcontractor’s UTR, Name, NINO or CRN in order to match the subcontractor’s record. Where the UTR, NINO or CRN are provided, this will return an exact match during the verification. Users of the HMRC online filing application will now see a “Tax Treatment” column on their list of subcontractors, showing the subcontractor’s tax treatment from the most recent verification undertaken online. If a subcontractor’s tax treatment is changed internally by HMRC staff, using CISR, the “Tax Treatment” column in the HMRC online filing application will not be updated on the online record. In these circumstances, the contractor will be advised on the CIS316 ‘Change of Tax Treatment’ letter to re-verify the subcontractor to ensure their online records are up to date. It will be possible for a contractor to submit a verification request and/or a monthly return without a particular subcontractor’s UTR but the contractor will be advised that, in such circumstances, the subcontractor’s verification will be ‘unmatched’. It will now be possible to verify a subcontractor where their UTR matches a known subcontractor on CISR, as long as the NINO or CRN also matches what is on the subcontractor’s record, even if the subcontractor’s name has failed to match the CIS Record. The facility within the HMRC online filing application that allows contractors to input directly a subcontractor’s tax treatment status have been withdrawn and only the tax treatment information generated by HMRC will be displayed.
The Construction Industry Scheme Operational Forum (CISOF) is an HMRC forum that provides feedback from the construction industry on the day-to-day performance of the Construction Industry Scheme. CIPP’s Samantha Mann attends thig forum so if you have any comments or issues that you would like raised, please send them to policy with CISOF as the subject title.
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Improving the operation of the Construction Industry Scheme 9 May 2016
Estimated examples have been published detailing the admin burden impact of the improvements to the operation of the Construction Industry Scheme (CIS).
From 6 April 2016 legislation has been introduced to improve the administration of CIS. The changes include:
a simpler process for sub-contractors to achieve gross payment status mandatory online filing of monthly returns and subsequent amendments for contractors an improved online verification service for contractors to verify the status of sub-contractors, but this will not be mandatory until April 2017. The overall impact is that there will be a negligible one-off implementation cost for these measures mostly due to sub-contractors opting to apply for gross payment status. The estimated average administrative savings in the first 5 years is £400,000 per annum.
The document below contains detailed estimates of the administrative burden impact of the CIS reform.
Administrative burden impact of the Construction Industry Scheme (CIS) reform - estimates
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