What the contractor needs to report
Start with the period being reported and the subcontractor payments made. Identify whether the records show gross amounts, deductions and net payments consistently. Differences between an invoice and a bank transfer need explanation rather than an unexplained adjustment.
Checking the source information
Keep subcontractor details and verification information available with the payment records. Review the information before preparing the return so missing or inconsistent entries can be investigated. Verification and reporting are linked tasks, but completing one does not complete the other.
subcontractor verificationPreparing the return
The return figures should reflect the underlying activity for the relevant period. A consistent review process helps ensure that payments are not missed or counted twice. Discuss the current arrangement and the support needed before assuming a particular filing scope.
If records are incomplete
If the records are incomplete, list the gaps and the periods affected. Bank records can help trace payments, but invoices and subcontractor information may still be needed to understand them. Bring any HMRC correspondence to the consultation too.
bookkeepingYour questions, answered.
Do I need a return if no subcontractors were paid?
A period with no payments still needs the appropriate CIS position to be addressed. Check the current HMRC process for your circumstances.
What if a deduction looks wrong?
Keep the invoice, payment and verification information together so the difference can be investigated.
Can CIS records be reconciled with my accounts?
They should be consistent with the bookkeeping. Reconciliation helps explain the relationship between gross costs, deductions and payments.