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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: construction industry scheme (CIS): gross payment registration - action prior to the compliance check

The CI Caseworker should familiarise themselves with the information at:

  • COG910080 explains the different tax treatments within CIS.
  • COG910090 explains what conditions a subcontractor must satisfy to pass the Compliance Test for gross payment registration and how HMRC will routinely check that this condition continues to be satisfied within the 12 month qualifying period.
  • COG909145 gives details of failures that can be identified when a Scheduled review Tax Treatment Qualifying Test (TTQT) is run. More information can be found atCISR43080.
  • COG909100 advises you should have already set the Compliance check indicator on the contractor’s CIS screen showing details of the start date and contact details of the CI Caseworker.

To ascertain the current status of the contractor’s compliance as a subcontractor, you should, prior to commencing your check run ‘information only’ Tax Treatment Qualification Test (TTQT). This needs to be done at least 2 days in advance of the commencement date of the check as it is run overnight on the system.

This is done by accessing the CIS system and in the Identify Customer screen opening the CIS record for the contractor by using the contractor’s UTR and in the ‘contact’ selecting ‘internal enquiry’.

This then opens the CIS Main Menu window. You must tick the panel ‘Subcontractor Registrations’ before being able to make the selection [View Customer] from the Menu.

Once you have opened the ‘View Customer’ screen check the ‘Current tax treatment details’ panel which will show if the treatment is still gross and also if an open tax treatment appeal exists.

The results of all TTQTs run to date; including your ‘information only’ run for the subcontractor can be viewed by selecting the ‘TTQT result’ tab at the top of the view customer screen. By clicking on the line of a result you will be able to see the reasons for any ‘fail’ TTQT result.

You can also view the current status of any TTQT appeal by selecting the TT appeals tab at the top of the view customer screen.

You should be aware of this situation so that if the contractor has already been advised by the system issue of CIS308- notice of withdrawal of registration- you can deal with any comments from the contractor. COG909155 gives guidance on actions relating to withdrawal of registration for gross payment.