Withholding tax reporting

Taxpayers must submit a report to the tax authorities of the vendors that have received payments and the tax withholding that was performed. Typically, these vendors are classified by vendor type and transaction type. Taxpayers must also provide each vendor with a report or letter confirming the tax that has been withheld in the period.

United Kingdom specifics

The customer (aka contractor) files monthly Construction Industry Scheme (CIS) returns with the HMRC of monies paid/withheld from payments to sub-contractors. Internet filing enabled software and online forms are available from HMRC and commercial software suppliers. These can be used to file CIS monthly returns (CIS300) and make verification requests.