Construction Industry Scheme - CIS4300

Taxpayer records: contractors: introduction

CONTRACTORS: INTRODUCTION

This paragraph serves as an introductory overview of contractor records; for deeper coverage use the above links to information or action guides.

From the contractor end of the Construction Industry Scheme, the CIS system is there to ensure the correct flow of the right type of vouchers to the contractor and permit the tracing of both payments and vouchers within the Scheme.

A CIS taxpayer needs to be set up on the CIS system as a contractor when s/he engages subcontractors within the Scheme to ensure the issue of the vouchers and to establish a UTR against which to trace those vouchers and associated payments.

As a further refinement, to allow for more than one address for the issue of vouchers to the larger contractors with more than one site, contractors are set up with additional contractor schemes. Any contractor has at least one contractor scheme which is based on his/her BROCS scheme, created and maintained by the contractor's Employers Section. Soon after a contractor record is created, contractors will be sent a letter notifying them of their

• Contractor Tax Reference (including the scheme identifier)

• Accounts Office

- details of the initial stock of CIS vouchers that will be issued for recording payments made by that contractor scheme.

At the beginning of the new Scheme and daily thereafter, all BROCS records with the XP or PSC signal set will be linked to the CIS system. The record details will stay on the CIS system and be updated daily until the BROCS signal is changed to P (PAYE only) or is ceased.

The main task in setting up the CIS taxpayer as a contractor is to link the taxpayer UTR to the BROCS record so that details may flow between BROCS and CIS. This is covered at CIS4309, CIS4352 and CIS4354. The setting up of a taxpayer record on CIS is covered at CIS4205 and CIS4250.

Form CIS1 is designed to obtain the information necessary to link a taxpayer with a BROCS reference on the CIS system and to ensure the correct number and type of vouchers are supplied to the contractor. This form is covered at CIS4325.

NOTE:
Remember that the link to the BROCS system will not pick up changes made to the CIS record. To ensure that the BROCS and CIS records match it is therefore very important that the Employers section is kept informed of scheme closures and changes in scheme type. Only by doing this can you ensure that the BROCS record is updated, the correct EOY returns are issued and the issue of unnecessary reminders is prevented.

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