CISR62120 - Monthly return: issue monthly return: what if a contractor has more than one scheme?
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Under CIS up to 5 April 2007, contractors with more than one scheme had a unique link to their UTR by what was known as a ‘scheme identifier’.
From 6 April 2007 though, CISR will work largely at scheme level. All contractors will have a UTR and each separate scheme will be registered under a separate Accounts Office (AO) reference. It is therefore the AO reference that is now the scheme identifier.
Under CISR then, each contractor has a UTR and one or more AO references.
However, regardless of how many individual schemes are linked to the sole trader’s UTR, a separate return will be issued (and must be completed) for each scheme, each month.
Elections under SI2005/2045 reg.3
Some contractors administer their operations from several different bases and a single contractor scheme can be difficult for these contractors to operate.
A specific election under SI2005/2045 reg.3 can therefore be made by a contractor to operate separate contractor schemes either for each distinct part of a business, or for different groups of subcontractors.
The election must be made in writing to an Officer of HM Revenue and Customs and must include:
- confirmation of the first tax period for which the election is to have effect
- the information necessary to identify each group of subcontractors the contractor wishes to deal with under a separate contractor scheme. For instance, the contractor might define such a group in terms of ‘All subcontractors paid by my Bristol regional office’ and likewise for each of the remaining units, and
- a declaration that the contractor makes payments subject to CIS only to the subcontractor groups identified in the election. This is so that the groups specified cover the contractor’s whole subcontractor workforce and none are left out of account.
Elections need to be made before the beginning of the tax month immediately preceding the tax month for which the election is to have effect.
The election must be made in writing to an officer of HM Revenue and Customs before the beginning of the tax month immediately preceding the tax month for which the election is to have effect.
To revoke either of these elections, notice must again be given in writing to an officer of HM Revenue and Customs. A revocation notice must be provided before the beginning of the tax month for which the election is to be revoked.
If an election has not yet come into effect, it may be revoked at any time before the beginning of the relevant tax month is which it was to take effect.
A revocation does not preclude the making of a new election for the same or a later tax month.