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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 - until 5 April 2007 - registration cards

There were two types of Registration Cards.

Permanent Registration Card CIS4(P)

This card had no expiry date and bore either a NINO or exceptionally a ‘system identifier’ (provided where a subcontractor did not have a NINO - generally a non-resident subcontractor).

Temporary Registration Card CIS4(T)

This card did not bear a NINO and had an expiry date.

Both types of card included a photograph and the signature of the authorised user.

Where a subcontractor was a Registration Card user the contractor had to

  • see the original card (not a copy) and check that it was genuine
  • check that the card was in date
  • check that the cardholder was the authorised user by reference to the photograph and a sample signature.

On or before making the first payment to the authorised user the contractor had to make a note of

  • the name of the card holder
  • the number of the card
  • the date the card expired for CIS4(T) cards
  • the NINO or system identifier for CIS4(P) cards.

Where a contractor had previously seen a subcontractor’s permanent Registration Card and had no reason to doubt that the person who produced it remained the user of that card, the contractor would not need to ask to see it again.

Any travelling expenses, including fuel costs, had to be included in the payment from which the deductions were made.

On making each payment the contractor had to make a note of

  • the gross amount of each payment made, excluding VAT
  • the cost of any materials, excluding VAT
  • the amount of the deductions.

The following items were to be excluded from the amount liable to deduction

  • VAT
  • materials bought by the subcontractor used in construction operations
  • plant hire used in construction operations (provided it is used in that specific contract and is not owned or being purchased on hire purchase)
  • any Construction Industry Training Board (CITB) levy.

The contractor had to

  • account to HM Revenue & Customs monthly (or quarterly if the total average deductions including PAYE, NICs and SLDs totalled less than £1,500 and the contractor chose to do so) for the monies deducted
  • provide the subcontractor with CIS25 vouchers, COG909570 
  • forward the top copy of the CIS25 to the Processing Centre within 14 days of the end of the month in which payment was made.

When a contractor has

  • failed to properly inspect a Registration card before making a payment under deduction of tax or
  • failed to complete a CIS25 voucher or
  • completed a CIS25 voucher incorrectly

the caseworker should

  • question the contractor to find out the extent and reasons for the error or failure
  • consider whether a penalty is appropriate (COG914000) and
  • consider whether it is appropriate to cancel gross payment status (COG910110).