Construction Industry Scheme (CIS) Online – Electronic Data Interchange (EDI)

 

Frequently Asked Questions: About CIS Online - EDI

Contents

Q. What is CIS Online-EDI?

A. It is the electronic exchanging of CIS information between the contractor's computer and HM Revenue & Custom's without any manual intervention. The CIS forms and returns that can be exchanged in this way are:

CIS Forms

Direction

Description

CIS23 Construction Payment Voucher Gross Contractor to HM Revenue & Customs Voucher used to record payments made to subcontractors holding a CIS5
CIS25 Tax Payment Voucher Contractor to HM Revenue & Customs Voucher used to record payments made to subcontractors holding a CIS4
CIS36(CS) Contractors Return Continuation Sheet Annual Contractor to HM Revenue & Customs Schedule accompanying the contractors annual return. Includes details of all payments made in the year.

Q. What are the benefits of CIS Online-EDI?

A. There are four main benefits:

  • Accuracy

    Primarily EDI improves the quality of service, since it enables information to go from one computer application to another with no operator intervention. This reduces the likelihood of errors that can be incurred as a result of re-keying data from paper forms. Keying data from forms by an experienced operator results in a 2% error rate. By using EDI, the forms are processed with 100% accuracy. Sending information online allows checks to be made automatically to see if the correct format, simple business rules and syntax have been followed.

  • Speed and acknowledgement of receipt

    Using EDI means transferring forms from one organisation to another in a matter of hours or even minutes not days. It does not rely on the handling parties along the way.

    It rapidly acknowledges receipt of online forms between the sender and receiver, reducing the need for contact.

    The speed at which CIS data is transferred means that information regarding CIS deductions paid by Contractors and tax suffered by Subcontractors is reflected on their records much more quickly

  • Economy

    Using EDI can save on

    • staff who normally process the paper
    • cost of paper, printing and postage
    • and paper storage.

  • Flexibility

    EDI allows the contractor to send data to the Revenue at the time that suits them. There is no restriction on the time when data can be sent. The due filing dates for vouchers and annual End of Year returns still apply however.

Q. Who would be interested in CIS Online-EDI?

  • Any organisation that handles high volumes of subcontractors vouchers and returns, e.g. contractors with a large number/ high turnover of subcontractors.
  • Payroll bureaux

Q. Can contractors still send/receive paper vouchers if they opt to use the CIS Online-EDI ?

A. When you sign up for CIS Online-EDI, you will be required to submit voucher information online to HM Revenue & Customs for both the CIS23 and the CIS25. You will not receive any more paper CIS23s and will be issued with an online version of the CIS25 vouchers. You will no longer need the old-style manual CIS25 vouchers that you may have used in the past.

The online version includes a single paper voucher for you to give to your subcontractors. Where, exceptionally, you think you may need a supply of manual CIS25 vouchers to use alongside your online CIS23s, you should contact us to discuss the matter.


Q. If I no longer receive paper vouchers, how do I know what the serial number of my voucher is?

A. Once you have registered for CIS Online-EDI, you will be given instructions as to how the voucher serial numbers will be formatted when you start to use the service.


Q. What if I include the wrong amount on my CIS Online-EDI voucher(s) by mistake?

A. The procedure here is the same as it is if you use paper vouchers. You should write to your tax office and give them the serial number(s) of the incorrect vouchers. Your office will arrange for the vouchers to be amended.


Q. Can software developers get some form of certification/recognition?

A. No.

However details of EDI enabled software are included in the EB4 (CIS) (PDF 191K)

To be included in this publication, the product must be able to:

i. produce either all EDIFACT or all Generic Flat File (GFF) formats, as described in the EB5 (CIS) Message Implementation Guidelines (PDF 319K)

ii. translate all GFF formats into EDIFACT, and vice versa. Both formats are described in the EB5 (CIS) Message Implementation Guidelines (PDF 319K)


   
 
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