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HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
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The Scheme: contractors: review of business accounts

When you receive accounts or a return for a business that is not already treated as a contractor, you should examine the return or accounts to see whether the amount spent on construction operations is now enough for the business to be considered a deemed contractor (See CISR12050). This is in order to identify clear-cut cases.

Time need not be spent on detailed examination of cases which are only likely to be near the £1 million average threshold. Businesses whose annual expenditure fluctuates marginally above and below the limit should not be required to operate CIS.

If you conclude that a business should be classified as a deemed contractor as a result of this examination, you should consider the guidance at CISR12060 to establish when the business should be required to operate the Scheme.