Changes to the Construction Industry Scheme (CIS)

If you’re a Limited company operating within the Construction Industry Scheme (CIS) you need to be aware of the changes coming into play as of this month (April 2022). 

HMRC have introduced additional information that needs to be submitted with your Employment Payment Summary (EPS) which you must submit for any CIS deductions suffered as a subcontractor. 

The additional information required is your Corporation Tax Unique Taxpayer Reference (UTR) in order to claim your deductions.

If you fail to use this new field on your EPS submission HMRC will reject it, so it’s important that you take note of this change. 

To check or update your settings in your Sage 50 Payroll software your need to follow the following steps:

  1. Go to company
  2. Then settings
  3. Select HMRC Payments
  4. Update the appropriate field

If you have misplaced your Corporation Tax UTR you can request a copy online. It will be sent to the address where the business is registered with Companies House.

If you are operating within the CIS but you are not a Limited Company, and therefore do not have a Corporation Tax UTR, then you should not make the claim for deductions on the EPS. Your deductions should be claimed on your Self Assessment Tax Return.

For advice, guidance and support with your Sage 50 Payroll software join our free Sage 50 Payroll Users Support Group.

19/4/22

“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

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