Did you know you need to take an additional step when preparing a CIS payment and deduction statement? On the EPS, there is an extra field for CIS deductions, and companies must enter the COTAX reference number or CT UTR (Corporation Tax Unique Taxpayer Reference) to make claims for CIS deductions. Otherwise, EPS submissions would be rejected by HMRC.
If a company fails to validate the new CT UTR but needs to report anything else, the claim for CIS deductions should be removed, and EPS should be submitted once again.
If a company has misplaced its CT UTR, a request for the CT UTR can be made online, and it will be delivered to the company’s registered address by HMRC.
Construction businesses cannot claim a CIS deduction on the EPS as they are considered limited companies. In that case, deductions should be reported and claimed on the taxpayer’s self-assessment tax return.
When to File CIS Payment and Deduction Statement
Relevant companies must prepare and submit a CIS statement for payments and deductions on the fifth day of every month. The last day of filing is on the 19th of every month. This is to ensure that the date of submission would not coincide with the salary date.
Meanwhile, if a company sends weekly payments to a subcontractor, it should prepare all the necessary details and send them to HMRC on the last day of filing.
Save Time and Ensure Accuracy with Payroll Software
Filing and submitting a CIS statement for payments and deductions can be tedious and time-consuming. However, it is a crucial requirement your company must fulfill before the deadline mentioned above. Failure to do so increases your risk of receiving CIS penalties from HMRC.
Here is how to pay CIS for subcontractors. Use a CIS payroll software such as Primo Umbrella to help you save time and effort. Primo Umbrella is a computerised payroll system designed to automate critical business processes.
One of the software’s most notable features is that it automatically calculates taxes and other deductions, including CIS deductions. This makes it easier and quicker to calculate payments and send money to HMRC.
Furthermore, the software’s automation capabilities promote data accuracy. This helps ensure that construction companies like yours send the right salary to your staff and pay taxes correctly at the right time.
This construction payroll software can also provide you with other tools and resources to help you handle CIS payroll easily. This enables you to increase overall business productivity and efficiency.
Primo Umbrella has a user-friendly interface to make payroll processing quick and convenient. It can also be accessed anytime and anywhere as long as you have an internet connection. This feature is particularly useful if you have staff members working from home or off-site.
Equipping your business with reliable CIS payroll software is certainly worth your consideration if you want to simplify the process of preparing a CIS statement.
Invest in Payroll Software Today
With HMRC introducing an additional field on the EPS for CIS deductions, construction companies like yours must ensure they are entering the required data carefully. This, in turn, will help ensure the accuracy of your CIS statements and reduce the likelihood of HMRC rejecting your EPS submissions.
Payroll processing is a vital business process that should be handled with utmost care and accuracy. For this reason, it is worth considering investing in Primo Umbrella, a software system designed to streamline the process of calculating and handling CIS payroll. If you have questions or enquiries, or if you would like a demo, don’t hesitate to get in touch with us.