Monthly Return

This section outlines the essential requirements for monthly payment reporting within the Construction Industry Scheme (CIS), as specified by Her Majesty’s Revenue and Customs (HMRC). According to HMRC guidelines, all scheme participants are obligated to submit a comprehensive monthly return that details payments made within the scheme or, alternatively, report if no payments have occurred during the specified period.

1. Close retention tax period
2. Submit retention tax period
3. Reporting inactivity

Close CIS/RCT periods

To make a submission to the authorities, you must close CIS/RCT Tax Period. You cannot reopen a period, clear the checkboxes, nor post into close period.

1. Choose the 🔍 icon, enter CIS/RCT Periods, and then choose the related link.
2. Choose the Close Retention Tax Periods action. The connected Detailed CIS/RCT Entries will be closed

CIS/RCT Tax Statements

When a period is closed, the CIS/RCT Statements are created for that period. While a CIS/RCT Period contains information about the payments deduction for some period of time, a CIS/RCT Statement shows information for a period of time and particular vendor.

1. Choose the 🔍 icon, enter CIS/RCT Period, and then choose the related link.
2. Choose the Drill-down button in the Statements field. If there were any payment for the closed period, you will be able to see detailed information on deductions, providing a comprehensive overview of the CIS/RCT Statement for the specified period and vendor.

Submit CIS/RCT Period

If you set Submit Method to HMRC in the retention tax setup page, it is possible to submit the data directly to the HM Revenue & Custom’s online service. For the successful monthly submission, it’s essential to configure and input precise HMRC data obtained during the schema registration to ensure accurate setup to pass the quality standard and business validation. Please read about it here.

To create submission request

1. Choose the 🔍 icon, enter CIS/RCT Period, and then choose the related link.
2. Choose the Submit Retention Tax Period action. On the action run, you will be asked to agree with declarations that are needed for successful submission.

Upon successful submission, the retained amount from the GL account designated for retention tax is automatically reallocated to the settlements account, as configured in the posting setup.

Report Inactivity

In instances where no deductions have been made during a specific reporting period, it is still essential to submit a report indicating this inactivity. This ensures accurate and compliant reporting under the Construction Industry Scheme (CIS). To report inactivity, follow these steps:

1. Choose the 🔍 icon, enter CIS/RCT Period, and then choose the related link.
2. Choose the Submit Retention Tax Period action. On the action run, you will be asked to agree with declarations, and then check the option Report Inactivity to True in the request page.