Businesses are required, by law in the UK, to validate the CIS status of a supplier with HMRC. This can be done manually but is not efficient, and many ERP systems have standard built in functionality that allows for this.
An integration is required between D365FO and HMRC. This integration must:
- Submit relevant CIS information to HMRC for the subcontractor in order to validate their status.
- Update the supplier record with any changes from HMRC, including the CIS status, Verification date and Verification number.
This verification is done with HMRC when:
- A new supplier account is created.
- Existing suppliers are used, where purchases have not been made against the account in the previous two tax years
This functionality is available in their existing system.
This is a statutory requirement: