## Company Construction Industry Scheme (Cis) Deductions Set Off Against Monthly Or Quarterly Tax/National Insurance Contributions Payments

Companies that have CIS deductions taken from their income as subcontractors should set these off against their monthly or quarterly payments to HMRC. Companies should reduce their tax/National Insurance contributions or CIS payments by the amount of CIS deductions taken from their incoming payments.

## Only Companies May Use This Arrangement. It Is Not Available To Individual Subcontractors Or Partnerships.

CIS deductions taken in a pay period that cannot be fully set off against payments due to HMRC for that period should be carried forward and used for later pay periods within the same tax year.

When the CIS deductions available for set off in a pay period do not cover the whole of the company's liability for that period, the company must pay over the balance by the normal payment date.

Companies need payment statements for all the CIS deductions taken from their income and should have received these from the paying contractor(s). But if the statements have not yet been received a company can still set off the CIS deductions against its monthly or quarterly payments.

Companies must keep a record of the amounts set off. You may use the table overleaf. If you use a form P32 *Employer Payment Record* or the table in your Payslip Booklet to record your tax/National Insurance contributions payments, leave columns 16 and 17 blank.

When we have received the company's last Full Payment Submission (FPS) and Employer Payment Summary (EPS)
due for the tax year, any CIS deductions that have not been set off during the tax year may be repaid. Or we may set them against any unpaid tax, depending on the amount involved.

## If You Need More Information

You may phone the CIS Helpline on **0845 366 7899** if you need to know more about how the changes will affect you.

For more guidance, go to www.hmrc.gov.uk/CIS

Date
paid
(I + J)
Total amount 
paid
See note below 
†
(figure in Col B)
Net National
Insurance 
contributions 
figure to appear
on payslip
(A minus G)
See note below*
Tax figure to
appear on payslip
(F minus G)
Excess CIS 
deductions
carried forward 
to next pay
period
CIS deductions
set off in this
pay period
(lesser of C or F)
from deduction
statements
(D + E)
CIS deductions
taken from the
company in this
pay period
(from Col H)
CIS deductions
brought forward
from earlier pay
period
Net National
Insurance
contributions
from Col 15 
of P32 or 
Payslip Booklet
(A + B)
A
B
C
E
D
G
H
F
I
J
K
£ £ £ £
£
£
£ £
£
£
£
Information from payroll records
Record of CIS deductions taken from company's income 
Amounts paid
Name of company
Net Income Tax
including amounts
you deducted
from 
subcontractors 
from Col 3 of P32 
or Payslip Booklet
Ending
5 Jul
5 Jun
5 Sep
5 Aug
5 May
4
3
5
2
1
Tax month
Enter 'M'
beside figure
if minus

† If the amount in **Column K** is NIL, send a payslip marked NIL to HM Revenue & Customs Accounts Office.

 You will have shown the figures in this 
column on Employer Payment Summary (EPS)
returns sent during the tax year
* Set off the full amount in **Column G** against tax, even if the figure in **Column I** becomes a minus figure.
Example
Example
Net tax payable (Column A)
1300
Net tax payable (Column A)
Minus 200
CIS deductions set off (Column G)
1500
CIS deductions set off (Column G)
100
Tax figure on payslip (Column I)    Minus   200
Tax figure on payslip (Column I)      Minus   300
5 Oct
5 Jan
5 Apr
5 Feb
5 Dec
5 Mar
5 Nov
Totals
Totals
Total
7
6
9
8
11
10
12