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HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
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The Scheme: primary legislation: section 69

This section deals with the verification process.

  • Where a contractor is due to make a contract payment or a payment which would be a contract payment but for S60 (4), the Board may make regulations requiring them to verify with the Board - except in prescribed circumstances - that the person to whom they are making the payment is registered for gross payment or for payment under deduction: FA04/S69 (1)
  • In making regulations under FA04/S69 (1) the Board may set conditions

    • preventing the use of the verification service unless prescribed conditions have been met: FA04/S69 (2)(a)
    • the length of time for which the verification remains valid: FA04/S69 (2)(b)
  • The Board may make regulations requiring that they notify those making contract payments that

    • a person registered for gross payment has either moved to payment under deduction or has ceased to be registered: FA04/S69(3)(a)
    • a person registered for payment under deduction has either moved to gross payment status or has ceased to be registered: FA04/S69(3)(b)
  • Provisions that may be made under sub-sections (1) and (3) of this section includes the entitlement for a contractor to assume, except in prescribed circumstances, that payment instructions received during the verification process have not changed: FA04/S69 (4)
  • FA04/S69 (5) provides a definition of ‘prescribed’.

See SI2005/2045 reg 6.