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HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
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The Scheme: secondary legislation: regulation 31

The regulation deals with circumstances where the turnover test may be treated ashaving been satisfied: to be read in conjunction with FA04/SCH11.

If a sole trader, partnership or company cannot satisfy the conditions atFA04/SCH11/PARA3(1), 7(1) and 11(1) they can be treated as having met the turnover testwhere HMRC is satisfied that –

  • the business does not mainly consist of construction operations: SI2005/2045 reg 31(a).
  • in the year prior to the application the total turnover of the business exceeded the relevant turnover threshold: SI2005/2045 reg 31(b).
  • in the year following the application the business is likely to receive relevant payments for construction operations which are incidental to the main activities of the business: SI2005/2045 reg 31(c).

ENABLING PROVISION – FA04/SCH11/PARA3(3), 7(3) & 11(4)