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Offline Danny  
#1 Posted : 17 October 2014 20:46:53(UTC)
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Danny

Rank: Newbie

Groups: Registered
Joined: 17/10/2014(UTC)
Posts: 2

When completing a CIS return (CIS300) online the "total payments" column is a bit confusing.

Should I enter in the "Total Payments" column just the gross labour or labour and materials?

Done a Google search and cannot see any immediate guidance on the or any easy or clear information from HMRC (as usual!) on how to correctly fill this in?

Grrrrr!

Anyone got any useful links on this to point me in the right direction?

Thanks,

Danny
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Offline TaxGuru  
#2 Posted : 17 October 2014 21:06:13(UTC)
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TaxGuru

Rank: Advanced Member

Groups: Registered
Joined: 01/04/2014(UTC)
Posts: 37
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Location: Berkshire

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Hi Danny

Saw this mentioned on Twitter just now and filed a few CIS returns for clients today myself.

I scratched my head around this one. It actually amazed me, unless I was missing something obvious myself!, just how vague HMRC's website is on the Gross Payments column especially as the material column sits right next to it.

HMRC are pretty useless and making LOTS of this clear. I think the problem is they make the rules but don't actually have to do any of the processes in real life that that make taxpayers or their agents do. That wastes such a lot of time. Come on HMRC be clear and keep things as simple as possible!

Well here is what I found when I wanted to double check the answer to this.

Does the “Total Payments Made” column include labour and materials?

Short answer is yes the "Total Payments Made" is the gross labour and material (excluding VAT).

Don't just take my word for it here is the background documents so you can check for yourself:

HMRC's guide to CIS return software development companies v3 page 4 from 2009 re programming requirements for CIS software.

http://www.hmrc.gov.uk/ebu/scenario-docs-monthlyreturn.pdf

Quote:
Scenario 3
The following information is required to generate the correct submission for a monthly return
Please note both subcontractors are expected in one XML submission – this is testing multiple submissions Contractor UTR 7325648155
AO ref 123PP87654321
Month Ending (Header) 2009-05-05

The 'Employment Status' is set to 'yes'
• The 'Subcontractor Verification' is set to 'yes'
• The 'Information Correct Declaration' must be set to 'yes'
• The 'Inactivity Indicator' is set to 'yes'
• Please note: Total Payments made includes Labour and Materials
Example returns can be found at Appendix D in the CIS 340 document


Note the HMRC "Please Note" extract above "Total Payments made includes Labour and Materials".

I have included the link to the CIS 340 document to for you so you can see the various examples and scenarios explained.

Hope that helps

TG






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