Construction Industry Scheme - CIS7300

Deductions: CT subcontractors: introduction

DEDUCTIONS AND CT SUBCONTRACTORS

This paragraph serves as an introductory overview of the module. For more detailed coverage of particular processes, use the above links to action guides or information panels.

The module covers the processes involved in dealing with claims to credit or repayment for CIS25 deductions suffered by companies.

Specific subjects covered include the following

• dealing with claims made with Company Tax Returns

• allocating credit (for periods up to 5th April 2002)

• repayments

• allowing credit against liability for PAYE/NIC (From 6th April 2002)

• Checking CIS deductions on EOY P35 returns

For coverage of the general principles of the deduction and claims to credit procedures see the module at CIS7000. That module also deals with less routine cases. The treatment of deductions suffered by sole traders and partners is covered in the module at CIS7200.

OUTLINE

Company subcontractors who are not certificated suffer deductions under ICTA88\s559(4) which are made on account of the tax payable on the subcontractor's trading profits. ICTA88/sS559(4) says that such deductions shall be treated as being Corporation Tax paid against the subcontractor's own tax liability. The legislation does not specify any particular order of set-off. Credit is normally given first against the tax due for the accounting period in which the deductions were made. An excess of credit over liability can lead to repayment.

In this module 'credit' can be taken to mean either credit by way of set-off, or excess credit being repaid, unless otherwise specified.

CIS forms
Glossary
Where am I?
Quick links index- CIS0100