HMRC Form CIS132 is an essential document used in the UK for the Construction Industry Scheme (CIS). It is a statement of subcontractor’s payments and deductions made by contractors under the CIS. The CIS is a tax deduction scheme specific to the construction industry, designed to regulate tax payments for subcontractors working within the sector.
In this article, we will delve into the details of HMRC Form CIS132, its purpose, when and how to use it, and the significance of accurate reporting under the CIS.
Table of Contents
What is HMRC Form CIS132?
HMRC Form CIS132 is a statement that provides details of subcontractor payments and deductions made by contractors under the Construction Industry Scheme (CIS).
What is the purpose of HMRC Form CIS132?
The primary purpose of HMRC Form CIS132 is to report the payments made to subcontractors and the associated deductions made by contractors under the CIS. This statement helps HMRC to track and regulate the tax payments in the construction industry.
Who needs to complete HMRC Form CIS132?
Contractors registered under the CIS are required to complete Form CIS132 for each subcontractor they engage with during the tax year. The form provides a summary of payments made to subcontractors and the deductions withheld for tax purposes.
When is HMRC Form CIS132 submitted?
Form CIS132 must be submitted to HMRC on a monthly basis. Contractors are required to send this statement to HMRC by the 19th of each month following the end of the tax month. For example, the statement for the tax month of October must be submitted by the 19th of November
What information is included in HMRC Form CIS132?
Form CIS132 includes the following information:
a. Contractor’s details, including the Unique Taxpayer Reference (UTR) and the name of the contractor’s business.
b. Subcontractor’s details, including the UTR and the name of the subcontractor’s business.
c. Payment and deduction details, including the total payment made to the subcontractor and the amount withheld for tax purposes.
Is HMRC Form CIS132 filed online or on paper?
Form CIS132 can be filed either online through the HMRC website or on paper by completing the physical form.
What are the consequences of late or incorrect submission of HMRC Form CIS132?
Late or incorrect submission of Form CIS132 can result in penalties from HMRC. It is crucial for contractors to ensure timely and accurate reporting to avoid such penalties.
Are there any exceptions to filing HMRC Form CIS132?
Contractors who have not made any payments to subcontractors during the tax month are not required to submit Form CIS132 for that particular month.
Also read: CIS Tax Refund
Can contractors amend HMRC Form CIS132 after submission?
Yes, contractors can make amendments to the Form CIS132 if they discover any errors or omissions. They must submit corrected statements as soon as possible to maintain accurate records with HMRC.
How does HMRC use the information provided in Form CIS132?
HMRC uses the information provided in Form CIS132 to monitor tax payments and deductions in the construction industry. It helps them ensure that subcontractors receive the appropriate payments after tax deductions.
Conclusion HMRC Form CIS 132
HMRC Form CIS132 is a crucial statement used in the Construction Industry Scheme (CIS) to report payments made to subcontractors and the associated tax deductions. Contractors are responsible for providing accurate and timely information to HMRC through this form to comply with CIS regulations. By ensuring the proper completion and submission of Form CIS132, contractors can avoid penalties and maintain a smooth and compliant tax process within the construction industry.
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