The CIS300 worked out from the books, and every payroll date on the board.
A contractor's monthly return and the payment and deduction statements come from the subcontractor bills in the books: the labour part of each payment, the rate HMRC verified for that subcontractor, the deduction. For every employer, the FPS, PAYE payment, P60, P11D and pension re-enrolment dates sit on the board beside it.
Three things to know first.
- The scheme's rules, applied to the ledger
- Tax is deducted from the labour part of each payment at the subcontractor's verified rate: 20% registered, 30% unverified, 0% gross payment status. The return covers the tax month to the 5th and is due by the 19th. The engine applies that; a person checks it.
- Statements for every subcontractor
- Each subcontractor gets a statement of the month's payments and deductions as a PDF, as the regulations require, from the same figures as the return.
- The payroll month, in view
- The FPS on or before each pay day, PAYE by the 22nd, P60s by 31 May, P11D and P11D(b) by 6 July, re-enrolment every three years. Each one on the board, chased like any other date.
The contractor's month and the employer's year.
Subcontractors from the books
The subcontractor bills in the ledger, each with its labour and materials split and the subcontractor's verification status and rate as the firm recorded them.
The CIS300
Every payment made in the tax month (6th to 5th), the deduction at the verified rate, the totals, ready for a person to check and submit by the 19th.
Payment and deduction statements
One per subcontractor per month, as PDF, from the same figures as the return.
The employer's dates
RTI full payment submissions, PAYE payments, P60s, P11Ds and pension re-enrolment for every employer on the list, on the deadlines board with the rest.
A row that moves
Records in, prepared, approved, submitted: the CIS month is a row on the board like a VAT quarter, chased when the bills are not in.
From the 6th to the 19th.
6th to 5th
Payments are made
The contractor pays subcontractors; the bills land in the books with labour and materials split.
6th
The month closes
The engine works out the deductions at each subcontractor's verified rate and drafts the return and the statements.
By the 19th
Checked, approved, submitted
A person checks the return against the bills, approves it by name, and it is submitted. The statements go to the subcontractors.
The scheme, as the engine applies it.
| Rule | What it means for the return |
|---|---|
| Deduction rates | 20% for a registered subcontractor, 30% for one HMRC has not verified, 0% for gross payment status. From the labour part of the payment only. |
| The tax month | 6th of one month to the 5th of the next. Every payment made in it is on that month's return. |
| The return | The CIS300 is due by the 19th of the month after the tax month, including a nil return where no payments were made. |
| Statements | Each subcontractor who had tax deducted gets a payment and deduction statement for the month, within 14 days of the tax month end. |
| The law | Finance Act 2004 sections 57 to 77 and the Income Tax (Construction Industry Scheme) Regulations 2005. |
Straight answers.
- Where does the return's data come from?
- From the subcontractor bills in the client's books, with their labour and materials split and the verification status the firm recorded for each subcontractor.
- Does it verify subcontractors with HMRC?
- The firm records each subcontractor's verification and rate; the engine applies the rate. Ask us about verification through HMRC's service for your contractor clients.
- Does Minns run payroll?
- No. It carries every employer's payroll dates on the board and chases the records; the payroll itself runs in the firm's payroll software.
- Who submits the CIS300?
- A named person at the firm, after checking the return against the bills and approving it. Nothing is submitted without that approval.
Close the next CIS month from the books.
Tell us which of your clients are contractors and which books they keep. We set the month up on the demo first.