The Scheme: primary legislation: schedule 11: part 3
PART 3: Conditions to be satisfied by companies
Where a company wishes to be registered for gross payment, whether as a partner in afirm or otherwise, the following conditions must be met.
The company must provide evidence, in accordance with regulations, to show that thefirms business is carried on in the United Kingdom; that it carries out constructionoperations itself or arranges for others to carry out construction operations, and thatthe business is largely conducted through a bank account. See SI2005/2045 reg 27.
- The company must
- provide evidence, as prescribed in regulations, that their business, in the year following the application, will receive relevant payments at least equal to the minimum turnover requirement, or
- that those holding shares in the company are themselves companies with gross payment status. See SI2005/2045 reg 29
‘Relevant payment’ has the meaning described in para 3(2)
- Minimum turnover, as specified in (1)(a) above, is whichever is the smaller of
- the minimum amount multiplied by the number of relevant persons in the company, see SI2005/2045 reg 30, or
- an amount specified in regulations. See SI2005/2045 reg 28(3).
- A ‘relevant person’ , as specified in (2)(a) above, is
- for a close company, a director (see S67 IT (Earnings and Pensions) Act 2003) or a beneficial holder of shares in the company, and
- in all other cases, a director of the company.
- The Board can make regulations to
- determine the number of relevant persons to be taken into account in accordance with (2) above, that is where, over a period, the number of such persons has fluctuated, See SI2005/2045 reg 30 and
- the Board may make regulations that, in certain circumstances, allow companies that do not meet the conditions at (1) to be treated as having met the turnover test. See SI2005/2045 reg 31.
- The company must have, subject to (2) and (3)e, complied with all their tax obligations and met all requests for information during the qualifying period.
- The Board may make regulations allowing a company to be treated as having satisfied the qualifying conditions. See SI2005/2045 reg 32.
- A company can be regarded as satisfying the conditions in (1) if there is a reasonable excuse for non-compliance and the company complied once the reasonable excuse had ended.
- The company must have paid any National Insurance Contributions when due.
- During the qualifying period the company must have complied with the following obligations under the Companies Act 1985:
- S226, 241 and 242 (annual accounts)
- S288(2) (directors/Secretary returns and notification of changes)
- S363 to 365 (annual returns)
- S691 (constitutional documents and overseas companies)
- S692 (changes in constitution or directors/Secretary in overseas companies)
- S693 (name and country of incorporation of overseas company)
- S699 (companies incorporated in Channel Isles or Isle of Man)
- Chapter 2 of Part 23 (accounts of overseas companies)
- During the qualifying period the company must have complied with the following obligations under the Companies (Northern Ireland) Order 1986:
- Art. 234, 249 and 250 (annual accounts)
- Art. 296(2) (directors/Secretary returns and notification of changes)
- Art. 371 to 373 (annual returns)
- Art. 641 (constitutional documents and Part XXIII companies)
- Art. 642 (changes in constitution or directors/Secretary in Part XXIII companies)
- Art. 643 (name and country of origin of Part XXIII companies)
- Art. 649 (accounts of Part XXIII company)
- There must be reason to expect that the company will continue to comply with all its obligations.
- To satisfy the test the company must have met all their tax obligations in full and on time.