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SAM110101 - REPAYMENTS: ISSUE REPAYMENT: IN-YEAR REPAYMENTS TO SUBCONTRACTORS (ACTION GUIDE) When you want to make an in-year repayment to a subcontractor in the construction industry,

follow steps 1 - 15 below. The guide is presented as follows Claim procedure (individual) - Steps 1 - 5 Claim procedure (partner) - Steps 6 - 11 Making a repayment - Steps 12 - 14

Verification procedures - Step 15 For details of how to access any of the SA functions, select ‘Index Of Functions’ on the left of the screen. CLAIM PROCEDURE (INDIVIDUAL) 1. Obtain a

completed form CIS40 2. Review all aspects of the subcontractor’s tax affairs to ensure that * The accounting period ended on or after 6 April and the construction industry business profit

figure is known * All outstanding returns have been received * No tax / Class 4 NIC arrears exist (although the CIS deductions can be set off against tax / Class 4 NIC arrears and any excess

taken into account in the in-year repayment request) 3. Check the repayment request against the information held in the ’Payment Details’ window in CIS for the subcontractor to check that

the deduction(s) being claimed appear there 4. Where it is considered that making a repayment may lead to an underpayment * Restrict the repayment, and * Explain to the taxpayer why the

repayment has been restricted 5. Where any doubt exists about the correctness of the details supplied, repayment should be refused and the taxpayer advised that the request for repayment

will be considered * After the end of the year of deduction, and * Following receipt of the SA return Note: Only refuse repayment where you have strong grounds for doing so Previous page

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