CISR69060 – Monthly Returns and the End of Year (EOY) Process: Insolvencies

Where a contractor has been made insolvent and there is evidence that

• they made deductions from payments to subcontractors, or
• had paid over CIS deductions to HMRC

the contractor is still required to submit monthly returns (CIS300) for the relevant period(s). However, there will be instances where it will be impossible to obtain the completed contractor returns either from the contractor or from the Trustee in Bankruptcy, Administrator or Liquidator for the contractor.

Where you have exhausted all possible avenues to try and get the relevant monthly returns completed, if a return is not processed and a charge is not created in CIS in respect of the deductions made by the contractor, the end of year process will not be able to finalise the year concerned. For CIS to send a ‘final’ end of year figure across to BROCS there must be ‘effective’ contractor returns captured for the month(s) the contractor was active during the year or you have set a ‘Return Exemption’ (See CISR69050) for the month(s) concerned.

The action guide at CISR69640 details the actions you should take for these insolvency cases.