What is Monthly CIS Processing and Submission?
Monthly CIS Processing and Submission is a compliance requirement under the Construction Industry Scheme (CIS) where contractors must report to HMRC on a monthly basis. This process involves preparing and submitting a CIS return that details all payments made to subcontractors during the preceding month, including any tax deductions withheld.
The return must be submitted by the 19th of each month, covering the previous tax month. This submission is crucial for ensuring that HMRC is informed about the amounts paid and deducted, facilitating proper tax administration and reducing the risk of tax avoidance within the construction industry. Failure to submit the CIS return on time can result in penalties.