COM125110 - Repayments / reallocations: non automatic repayments: repayment of CIS25 tax - responsible office

Companies who are subcontractors in the construction industry but are not certificated under S561 ICTA 1988 suffer deductions of tax under S559(4) ICTA 1988. These deductions from payments made to them for construction operations are often referred to as CIS25 tax.

The CIS25 tax

• Up to 05/04/02

• • Should be set off against the CT liability of the company

• On or after 06/04/02

• • Must not in the first instance be set against the CT liability. It should be used against any PAYE liability of the company. If any surplus remains that has not already been repaid via PAYE procedures then, and only at the request of the company, can it be treated as a repayment set-off against CT liability. The EDP to be given to these reallocations should be the date of agreement to the set-off

The order of set off is described in the SC (Subcontractors In the Construction Industry) Manual at SC1754 and SC1755.

For CIS deductions suffered on or before 05/04/02, a company can claim (under Regulation 13(1) SI 1975 No 1960) a repayment of any excess deductions of CIS.

• For a CT Pay and File AP in

• • Section 8 of form CT200

• • A form CT201 or amended return form

• For a CTSA AP in

• • Section 7 of form CT600 (Version 1)

• • An amended return form

It is not a statutory requirement that a return or amended return is used to obtain these repayments. You may accept written requests, so long as the information supplied is clear and sufficient. (For CTSA periods, a company cannot claim a repayment of CIS deductions under TMA70/S59DA, until the company delivers its return.)

Notes:

For a list of forms relevant to this subject, see COM125111.

For legislation applying to this subject, see COM125112.