CISR69020 - Monthly Returns and the End of Year (EOY) Process: Contractor scheme End of Year (EOY) Process

Shortly after the end of each tax year the system will determine which schemes need an End of Year (EOY) figure calculation for the tax year that has just ended, this is a fully automated process. EOY data about each scheme that was active in that tax year will be sent over to BROCS where it will then be matched to a scheme reference. These figures will be posted against that reference so that the end of year figures can be balanced. Where there has been a scheme transfer or merger in the year only one set of EOY information is sent to BROCS. (see CISR69030).

For each active contractor scheme found, automated checks will be made to determine whether all expected returns for that tax year have been received and processed, with no exceptions that are likely to affect the EOY total tax deducted figure. The likely exceptions affecting the EOY figure include unreadable or minus entries within fields on submitted returns, as well as missing contractor returns.

The information sent to BROCS will consist of the total cumulated tax deductions for the year as shown on all the ‘effective’ and ‘concluded’ monthly returns captured, and that figure will be given a status. The status of that figure will be one of the following;

• Inactive (I) - if the scheme has been inactive throughout the whole of the tax year. In this instance a ‘nil’ figure will be passed to BROCS.
• Full (F) - where a return has been received for each month that the scheme was ‘live’ and a return was expected, or any periods where no returns have been received, the return periods have been marked as exempt. (A return period can be marked ‘exempt’ for filing a return for that period, see CISR69050 for further information regarding EOY Return Exemption).
• Provisional (P) - where it is identified that;

• • not all expected returns for the scheme and tax year have been received, or
  • not all expected returns for the scheme and tax year have been processed (for example; where a return has been logged but not captured, or a return is still unmatched), or
  • one or more of the expected returns for the scheme and tax year have outstanding exceptions linked to them that may affect the cumulated total tax deducted figure - such as unreadable or minus entries within amount fields on submitted returns.

The effect of the ‘provisional’ status will result in any overpayment of tax deductions being withheld.

Example 1

A contractor submits six monthly returns followed by a six month period of inactivity in that tax year; the status of the EOY total tax deducted figure for the six returns would be ‘Full’ as no returns would be expected for the period of inactivity.

Example 2

If a contractor ceased on 15^t h January 2010 and had submitted ten monthly returns covering April 2009 to the cessation date this too would be shown as ‘Full’.

Where this is the first EOY figure being sent to BROCS for the tax year, it will also show this fact to BROCS by having an indicator of ‘New’.

End of Year (EOY) Amendments

After an EOY figure has been sent to BROCS it may become clear that this figure is no longer correct. This could be for any number of reasons, some examples being;

• An outstanding return is received
• The correction of subcontractor details on a return
• Exceptions affecting the cumulated ‘total amount deducted’ figure for a scheme and previous year are resolved.
• A return is processed which was not an ‘effective’ or ‘concluded’ return when the EOY figure was originally calculated.
• A return is reallocated from one scheme or period to another following investigation of multiple returns or contractor correction of the return.
• A return period for a scheme is marked as ‘exempt’, or an exemption is lifted. It should be noted that whilst the EOY figure may not change after recalculation it may change the status of that figure.
• Scheme registration or cessation details are updated.

When any of these events occur, the information previously sent to BROCS will be reviewed and an amendment will be automatically sent by the system. When an amendment results in a change to the EOY figures the difference between the last EOY figure calculated and the revised figure will be sent to BROCS. This is best explained with the following example;

Example 3

The system will also determine whether the amendment receives a ‘Full’, ‘Inactive’ or ‘Provisional’ status in the same way as the original EOY calculation. It will also show the fact that this is an amendment to the original EOY total sent to BROCS by having an indicator of ‘Amendment’ when this is sent across to BROCS.

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Multiple EOY Calculations sent on the same day

Only one EOY calculation will be sent to BROCS for the same scheme and tax year. Any further amendment to the first EOY calculation will be sent as an automated EOY amendment request. Where multiple EOY calculations are received for the same scheme and tax year on the same day only one request will be processed and treated as the EOY calculation. The EOY total for a scheme will be calculated at the end of the day and not at the point when the amendment or resend request is made.

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EOY history window

An EOY History window is available and this will show the following information collated from the CIS Monthly Returns captured, the periods of Inactivity that have been set, and the periods for which Return exemptions have been set;

• The date the EOY total was sent to BROCS
• The total amount of CIS deductions included in the EOY total
• The ‘status’ of the EOY total, this will fall into the following categories;

• • Full
  • Provisional
  • Inactive

• The type of notification, this will be;

• • New
  • Update

• The reason which prompted the EOY total to be sent to BROCS

If the only change made to the record does not affect the EOY status / figure then no update is sent to BROCS and this change will not be reflected within this window. For detailed guidance about the entries visible in the EOY History window see CISR90090.