CIS returns for nil payments

Under the Construction Industry Scheme (CIS), contractors must submit a monthly CIS return to HMRC, even if no payments were made to subcontractors during the period. Failing to submit a nil return when required can lead to penalties, so it’s essential to notify HMRC correctly.

If you expect to have no CIS payments for an extended period, you can simplify your compliance by informing HMRC in advance.

How to Report a Nil Return

To avoid the risk of forgetting to submit a nil return, you can notify HMRC that you do not expect to make payments for the next six months. There are two ways to do this:

  1. Tick Box 8 on your CIS return – This informs HMRC that no payments are expected for the next six months.
  2. Call the CIS helpline at 0300 200 3210 – HMRC will update your record and assume a nil return for the specified period.

This prevents unnecessary monthly nil return filings and reduces the risk of late submission penalties.

What Happens If Your Circumstances Change?

If you resume making payments to subcontractors during the nil return period, simply submit a monthly CIS return as normal. HMRC will automatically remove the nil return indicator, and your usual reporting obligations will resume.

How We Can Help

At Lewis Brownlee, we assist businesses in managing CIS returns for nil payments and ensuring full compliance with HMRC requirements. Our services include:

  • Managing CIS filings to avoid penalties.
  • Ensuring correct reporting of nil returns.
  • Providing expert guidance on all CIS obligations.

If you need help with CIS compliance, contact us today via our contact page for professional support. We are always happy to see how we can help. Plus, we have leaders in the field on site, so you’re in safe hands!

By staying on top of CIS returns, you can avoid fines and ensure smooth, hassle-free compliance.