Construction Industry Scheme: top tips

Newsletter issue - May 2020.

The start of the new tax year often marks the beginning of an extremely busy time for those using the construction industry scheme (CIS). HMRC have issued a reminder of some of the help that is currently available to help ease the workload. Here is a summary of the top tips HMRC provide:

Digital repayments

HMRC offer a digital repayment offer for CIS customers. Claims can be made through the CIS I-form.

The I-form can be completed by either the agent or the taxpayer. They need to provide their name, address, employer references, the amount of repayment they are claiming, if they want the repayment offset to any other Head of Duty and how they want the repayment to be made - payable order or BACS. Once submitted, the I-form will drop into a queue to be worked by a HMRC adviser.

Sending repayments to an agent or nominee

HMRC can send repayments to someone other than the customer. However, it should be noted that requests for CIS repayments to be made directly to an agent or nominee must be made in writing using form R38 or signed letter of authority.

Quicker processing timeframe

Usually, HMRC wait until 24 April to start reviewing repayment claims because of the CIS monthly submission dates: the 19th to submit returns and the 22nd to make any payments. This year, however, HMRC have committed to reviewing claims as soon as they are received. HMRC do stress that it does take time to review and process repayments, so claimants should allow 40 working days before following up on any claims.

HMRC support for CIS users

HMRC agents and CIS helplines are currently only available 8am until 4pm Monday to Friday. However, the HMRC CIS webchat facility is available later in the evening and on Saturdays too. Further information can be found at Construction Industry Scheme: general enquiries. Follow the link that says 'speak to an adviser online' from that webpage.

Finally, information about financial support available for businesses affected by the coronavirus can be found at https://taxagents.blog.gov.uk/2020/04/17/construction-industry-scheme-top-five-tips-for-tax-agents/