5 Steps for a successful Construction Industry Scheme (CIS) repayment claim for limited company sub-contractors

CIS repayment claims

One of the major discussions we have with clients surrounds cash flow and sometimes opportunities are missed when they are looking at their own business and accessing funding that is due to them.

There are some simple steps that can be taken to guarantee the first submission of your CIS Claim is correct to ensure you receive any repayment you are entitled to. At this time of year you should be making your CIS repayment claim to HMRC, so get it right FIRST TIME by following these 5 steps:

• By 19^th of April you should have ensured you have filed your company’s final Employer Payment Summary (EPS) and all related Full Payment Submissions (FPS) for the tax year, using your payroll software.
• If you began the tax year as a sole-trader or partnership, make sure your contactors are using your limited company’s Unique Tax Reference (UTR).
• HMRC will only accept repayment claims in writing to the following address:

National Insurance Contributions & Employers Office

HM Revenue and Customs

BX9 1BX

• Repayments will be made by HMRC directly into your company bank account if you send your bank details with your claim.
• HMRC are currently advising that they will process CIS repayment claims received in writing within 25 working days from receipt, where the claim matches the information held by HMRC.

It should be noted you can’t make your CIS repayment claim on the company’s Corporation Tax Return (CT600), but you can request the repayment is offset against an outstanding Corporation Tax or VAT liability.

At Johnston Smillie we can assist you with these claims, please contact Julie Hunter