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HMRC internal manual

Construction Industry Scheme Reform Manual

From
HM Revenue & Customs
Updated
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The Scheme: payments: contractors paying for work done on subcontractor's land

 

CISR15600 Action guide contents
   

 

Under SI2005/2045 reg 19, mainstream contractors may request authorisation not to apply the Scheme to small contracts or payments for construction operations amounting to less than £1,000 (excluding the cost of materials):

  • where the contractor is paying a subcontractor to undertake work that falls within the Scheme on the subcontractor’s own property, or
  • where the contractor is paying a subcontractor to undertake work on any agricultural property of which the subcontractor is a tenant.

An example of this type of payment is where a Utility Company lays a pipeline across some land and pays the land owner or tenant to fill in the hole after the pipeline has been laid.

To request authorisation not to apply the Scheme to such payments, contractors should contact the CIS Helpline and give us the following information:

  • details of the construction work to be done
  • who will be doing the work
  • where the work will be done
  • the cost of the work.

Where the request for authorisation not to apply the Scheme to payments of this nature satisfies the requirements set out above, you may grant such authorisation.