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HMRC internal manual

Construction Industry Scheme Reform Manual

The Scheme: contractors: scheme representatives

A contractor that is a company within a group may be authorised to appoint another of the companies within the same group to undertake its obligations under the Scheme. For example, a group of several companies required to operate the Scheme could choose a single company within the group to operate CIS on their behalf.

The definition of group companies for the purposes of this and other aspects of the Scheme, is contained at CTA10/s152. Basically, two companies are deemed to be members of a group if one is at least a 75% subsidiary of the other, or both companies are at least 75% subsidiaries of a third company and so on.

The Scheme representative must continue to make returns and payments to us under the name of the company or companies for which it is acting.

Each company that has chosen to have its Scheme obligations handled by another company within its group will always remain liable for any obligations it has under the Scheme even though it has chosen another company to operate the Scheme on its behalf.

To request authorisation in these circumstances, the company should contact the

  • CIS Helpline on 0300 200 3210.

The helpline will then contact the NICEO (using an E-form to the Work Area Mailbox (WAM)) for the company making the request. NICEO should then explain to the company that wishes to act as a ‘scheme representative’ for any companies within the same group, that they will be set up as a Scheme Specific Agent (See CISR19030).

Each company included in this arrangement should then submit an authorisation signed by either the company secretary or a director appointing the ‘scheme representative’ as a Scheme Specific Agent, and this should be forwarded once received to the Central Agent Authorisation Team (CAAT), Benton Park View, Newcastle for noting.

Once this has been done, contractor monthly returns will be submitted to the ‘scheme representative’ for each company within the group for whom an authorisation has been received. The ‘scheme representative’ will file the contractor monthly return and make any payments due under the respective references in respect of each company for whom they have been appointed, although ultimately the responsibility for doing this still rests with the individual company within the group.