The Scheme: contractors: ending of ‘deemed’ contractor status
Once a business becomes a deemed contractor by virtue of FA04/s59 (1)(l) it does not lose contractor status until expenditure on construction operations in each of three successive years has been less than £1 million.
Where a business claims that it is no longer a deemed contractor because less than £1 million has been spent each year in each of the three years preceding the end of the last period of account, the claim should be accepted with a minimum of checking.
In this case you should follow the guidance at CISR31050.
Any case of doubt or difficulty should be referred to the CIS Technical Team for advice (see CISR97090).