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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting guidance: employer compliance guidance by subject: the certifying document method

Because the contractor did not inspect the certificate itself, as described at COG909550, the following conditions all needed to be satisfied before the certifying document could be used.

  • the subcontractor held a CIS5 or CIS5(Partner) certificate
  • the contract under which payment was due was available in writing
  • payment was made in one of the following ways and not in cash

    • by cheque, the cheque had to be payable to the subcontractor company/partnership and crossed ‘account payee’
    • by credit transfer to a bank account which had been nominated by the company/partnership
  • payment was made to the company/partnership for its own work (and not as a nominee for someone else).
  • payment was made into the subcontractor company/partnership bank account
  • the contractor obtained from the subcontractor a certifying document on the company or partnership’s own headed paper (a copy is not acceptable)
  • the certifying document confirmed the

    • subcontractor company/partnership held a valid CIS5 or CIS5(Partner)
    • company /partnership name and address
    • the CIS5 or CIS5(Partnership) number
    • company registration number (CIS5 only)
    • signature of the company secretary or director in a CIS5 case or the nominated partner in a CIS5(Partner) case
    • validity period of the certificate
    • bank address and account number of the bank account into which payment is to be made

Where the contractor was satisfied with the results the subcontractor could be paid without deduction. The certifying document was retained by the contractor.

The caseworker should

  • check that the contractor complied with all of the above conditions