|CISR31600||Action guide contents|
When a contractor becomes insolvent an insolvency signal is set
on the parent SA or COTAX record which feeds through to the
contractor's CIS record. When this happens, the system stops the
issue of all CIS300 returns to all BROCS schemes associated with
Where a trustee, administrator, receiver or liquidator continues to operate the business as a going concern, the insolvency practitioner might use subcontractors. If this happens the Employers Section will open a new PAYE record in the name of the insolvency practitioner (See PAYE Online Manual under Insolvency of Employer). For the purposes of CIS, you should treat this as an additional BROCS scheme associated with the contractor.
Note that the contractor name entered on the CIS300 returns issued to the new scheme will not include any reference to the insolvency.
You should tell the insolvency practitioner to destroy any returns with the old scheme reference and only use returns showing the new reference