The Scheme: secondary legislation: regulation 25
This regulation deals with the registration provisions for gross or net payment status and registration cancellation for those on net payment status: to be read in conjunction with FA04/S63.
When applying to be registered for the scheme, either for gross payment or under deduction, subcontractors must provide sufficient information and evidence to satisfy HMRC as to their identity. This may include -
- a birth certificate: SI2005/2045 reg 25(1)(a).
- name, address, NINO and UTR of: individual (if a sole trader); all partners (if a partnership); all directors or beneficial shareholders (if a company): SI2005/2045 reg 25(1)(b)(i) to (iii).
- utility bills: SI2005/2045 reg 25(1)(c).
- council tax bills: SI2005/2045 reg 25(1)(d).
- a passport: SI2005/2045 reg 25(1)(e).
- a driving licence: SI2005/2045 reg 25(1)(f).
- company registration number: SI2005/2045 reg 25(1)(g).
- company’s memorandum and articles of association: SI2005/2045 reg 25(1)(h).HMRC may require the applicant to present any of the above in person: SI2005/2045 reg 25(2).
If HMRC are not satisfied by the evidence presented to confirm identity, they may refuse to register the applicant for net payment status but must provide a notice advising the reasons for refusal: SI2005/2045 reg 25(3).
If HMRC suspect, at any time, that a person has
- in respect of (1) provided false or incorrect information : SI2005/2045 reg 25(4)(a).
- under any provision of FA04: Chapter 3 or the regulations, provided a fraudulent or incorrect return or provided incorrect information, whether as a contractor or subcontractor: SI2005/2045 reg 25(4)(b).
- knowingly, as a contractor or subcontractor, failed to comply with the provisions of the scheme: SI2005/2045 reg 25(4)(c).
- they may issue a notice immediately withdrawing registration for payment under deduction, giving the reasons for the cancellation: SI2005/2045 reg 25(4).A person can appeal against a withdrawal or refusal notice by giving notice to HMRC. The time limits and grounds for appeal are set out in Table 2 of SI2005/2045 reg 25(5).
ENABLING PROVISION – FA04/S63 (1) & S68