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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: commencing the compliance check: employer is also a contractor

Where during an employer compliance check it emerges that the employer is also a contractor but RIS did not identify the construction industry element of the case or a CIS risk is disclosed or identified, you should:

  • advise the employer that the Construction Industry Scheme element will be conducted separately
  • discuss with your manager who will arrange for a CIS trained caseworker to assist in the case by jointly working all the risks identified
  • continue to pursue the remaining risks.

Where PAYE/NIC failures are identified as part of a PAYE only case and the employer is also operating as a subcontractor within CIS and who holds Gross Payment Registration you must:

  • make early consideration of withdrawal of the Gross Payment Registration (COG909150)
  • arrange an early discussion of the case with a CIS trained caseworker
  • seek early advice from the Functional Lead Team (CIS Technical Support) (COG909090).

A brief overview of what conditions a subcontractor who already holds gross payment registration must satisfy (known as the compliance test) to maintain the registration to hold gross payment status is at COG910090.

Further more detailed information regarding gross payment registration can be found at CISR46000.