CISR72650 - Deductions: credit and repayment: repayments to non-residents

This action guide explains the steps you should take to deal with a claim for repayment of deductions made by a subcontractor claiming to be non-resident in the UK for tax purposes.

1. Ask the subcontractor to send you the payment and deduction statements for the payments involved.
2. Establish that the subcontractor is non-resident in the UK for tax purposes.
3. Establish whether the relevant Double Taxation Agreement entitles them to claim exemption from UK tax on income.
4. Follow the steps described within CISR72630to verify the payment and deduction statements.
5. Establish whether there are any outstanding employer or contractor liabilities to set off against the repayment.
6. Make any appropriate set off for taxes due on income or contractor or employer liabilities first.
7. Arrange for prompt repayment of any outstanding amount using form R23 and R37. (See the Guidance at RM2640).

Reminder

Charity, Assets and Residence (CAR) is now responsible for CIS related matters for all current and new non-resident companies that are not liable to CT because they are not trading in the UK through a branch or agency.

Any non-resident companies seeking advice on CIS related issues should be advised to contact CAR directly. The contact details are at CISR97040.

The advice of CAR should be sought in any case of difficulty in dealing with non-resident subcontractors or contractors.