The Contractor Monthly Return

Further guidance on its completion

Contents

What is this page about?

Now that the first few contractor monthly returns have been submitted under the new Scheme, we have been asked to provide some feedback on how these are being received and to flag up any issues about which contractors and their agents should be aware.

Acceptable methods of return submission

The most important point we would like to make is that we can only accept contractor returns submitted in one of the following ways:

 

Method

Using

Online

the HMRC-provided free filing facility

 

a third party filing application

 

Electronic Data Interchange (EDI)

On paper

the pre-populated return we send out each month on form CIS300 and its continuation sheets on form CIS300(CS)

 

the manual, non-pre-populated, return on form CIS300(Man) included with the contractor pack and its continuation sheets on form CIS300(CS)(Man)

Nil returns

any of the methods listed above or by telephone to our CIS Helpline on 0845 366 7899

Unacceptable methods of return submission

We cannot accept any other methods of submission. This means, for example, that we cannot accept any of the following:

  • Photocopied contractor returns (either blank or pre-populated).
  • Photocopied continuation sheets (either blank or pre-populated).
  • Any returns printed out locally from Adobe PDF files taken from the HMRC website or the Employer's CD-ROM (these are only specimens).
  • Computer listings or anything similar that is not an official HMRC contractor return.
  • Paper substitute returns of any description.

We scan all paper returns using a high-speed, precision scanner. The HMRC-issued paper returns and continuation sheets are produced using special inks and calibration points so that the scanner can read them easily and efficiently. Locally produced and / or photocopied returns lack these special features and thus cannot be read by the scanner. This is why we insist that only original HMRC-issued returns and continuation sheets are used.

Completing the return – notes for guidance

Notes for guidance on the completion of the returns were enclosed in the contractor pack that was sent out to all existing contractors in January 2007. New contractors, starting up after that date, will have been sent a contractor pack shortly after registering as a contractor. The contents of the contractor pack are listed below. Additional copies of any of these items can be obtained on request from the CIS helpline.

  • CIS300 Helpsheet (Guidance poster) – Guide to CIS Contractor's monthly return.
  • CIS300 (Man) –Contractor's monthly return (blank return).
  • CIS300 (CS)(Man) – Contractor's monthly return – Blank continuation sheet.
  • CIS300 Notes – Contractor's monthly return guidance notes.
  • CIS327 (Guidance poster) – Verifying a subcontractor.
  • CIS340 – Construction Industry Scheme - Guide for contractors and subcontractors.
  • CIS341 Factsheet – A quick guide to the new Construction Industry Scheme.
  • CIS342 Factsheet – Registering for new CIS – advice for subcontractors.
  • CIS343 Factsheet – Applying to be paid gross – advice for subcontractors.
  • CIS344 Factsheet – Getting paid by a contractor – advice for subcontractors.
  • CIS345 Factsheet – Verifying a subcontractor – advice for contractors.
  • CIS346 Factsheet – The monthly return – advice for contractors.
  • CIS347 Factsheet – A contractor's obligations – advice for contractors.
  • CIS348 Factsheet – The scope of the Scheme – a quick guide.
  • CIS349 Factsheet – Are your workers employed or self-employed? – advice for contractors.

Things to watch out for when completing paper returns

  • Check that your return is for the right month – do not, for example, send in the return due for August on a form pre-printed for July (or any other month other than August).
  • Ensure your entries are legible – the return is of little use if we cannot read it, in which case we will have to send it back to you. This could result in the return missing the deadline which may then jeopardise your gross payment status (and may also lead to a penalty being incurred if after 19 October 2007).
  • Remember that box 4.4 on the return should show the 'total gross amount', excluding VAT, that you are paying your subcontractor. In other words, it should be the invoice total, excluding VAT.
  • If you have used a blank return please ensure that it shows the correct month-end date, your correct UTR and accounts office reference for the scheme to which it relates – this is especially important if you make more than one return for different schemes.
  • If you are an agent completing returns on behalf of clients, please ensure the returns show your clients' names, UTRs and AO reference numbers.
  • Ensure you have completed the declarations on the back page and have signed the return, otherwise we will have to send it back to you. This could result in the return missing the deadline which may then jeopardise your gross payment status (and may also lead to a penalty being incurred if after 19 October 2007).
  • Do not send an on-line return (including a nil return) for the same month that you have sent us a paper return.
  • If you have used blank continuation sheets please ensure they show your AO reference, UTR, and period of return in case they become separated from the main return.
  • Do not make multiple returns – if you have one scheme with one AO reference, you must only make one return for the month. You cannot send in multiple returns (unless you have more than one scheme – in which case you should submit one return for each scheme).
  • If you no longer take on subcontractors in CIS please tell us so that we can stop sending you a return.
  • Ensure you send in the return to reach us no later than 19 of the month.

Things to watch out for when completing on-line returns

  • Check that your return is for the right month and do not assume that the default month-end date shown on the system is correct – the system cannot always guess what you are planning to do.
  • Do not send a further paper return (including a nil return) for the same month that you have sent an on-line return.
  • If you no longer take on subcontractors in CIS please tell us so that we know not to expect any further returns from you.
  • Ensure you submit your return by 19 of the month.

Sending a paper return to us – dos and don'ts

Please do:

  • ensure you complete the declarations about employment status and verifications on the back of the return
  • sign the return in the box provided for this – otherwise we will have to send it back to you. This could result in the return missing the deadline which may then jeopardise your gross payment status (and may also lead to a penalty being incurred if after 19 October 2007)
  • ensure you use the envelope provided and put the right amount of postage on the envelope containing your return, and any continuation sheets, and send it to:

HMRC,
Construction Industry Scheme,
Comben House, Farriers Way,
Liverpool,
L75 1HL.

(Note: This is a new postal address for our Processing Centre, which differs slightly from the address pre-printed on many of our envelopes and other literature. Items sent to the old address will continue to be delivered correctly).

Please do not:

  • use returns on form CIS300 as additional continuation sheets – our system cannot handle these
  • attach any correspondence to your return – our processing centre is not able to handle it – please write separately to your usual local office
  • include any cheque or other payment with your return – where you pay by this method, cheques and payslips must be sent direct to our accounts offices using the envelopes provided for this purpose
  • fold the A4 sized return or continuation sheet – we will not be able to scan the details
  • staple one or more returns or continuation sheets together – this slows down the process and can make the return difficult to process
  • use photocopied or substitute returns or continuation sheets - we will have to send these back to you. This could result in the return missing the deadline which may then jeopardise your gross payment status (and may also lead to a penalty being incurred if after 19 October 2007)
  • put zeros next to the pre-populated entries if you are making a “nil” return. You can make a nil return by putting an 'X' in box 5 on the back page and then signing the form. Nothing more is needed.

What to do if you make an error or wish to amend a return

If you think you have made an error on a return that has already been sent to us, whether on paper or online, please let us know about it. To do this, you should ring our CIS Helpline or write to your own HMRC office dealing with your Contractor scheme. In either instance, please ensure you tell us which return is wrong and give full details of the error and the correction you need to make, where necessary.