CISR17520 - The Scheme: secondary legislation: regulation 51

This regulation deals with the inspection of records.

When asked, a contractor must deliver for HMRC inspection either all of their records or those specifically requested by HMRC. This to be done at the prescribed place and within a reasonable timescale: SI2005/2045 reg 51(1).

A definition of ‘contractor records’ is at SI2005/2045 reg 51(2)(a) and (b).

When asked, a person who is or who has been a subcontractor within the preceding 3 years, must deliver for HMRC inspection either all of their records or those specifically requested by HMRC. This to be done at the prescribed place and within a reasonable timescale: SI2005/2045 reg 51(3).

A definition of ‘subcontractor records’ is at SI2005/2045 reg 51(4)(a) and (b).

A definition of ‘prescribed place’ is at SI2005/2045 reg 51(5)(a) and (b).

HMRC may take copies or extracts of any document produced for inspection in accordance with (1) or (3) or can, if necessary, retain an original document for a reasonable amount of time: SI2005/2045 reg 51(6)(a) and (b).

If HMRC does remove an original document in accordance with para (6)(b) they must provide a receipt. If the person providing the document needs it for the conduct of their business, they can ask HMRC to provide a copy of the document within 7 days of a request being made: SI2005/2045 reg 51(7)(a) and (b).

If another has the right to hold the document in place of the payment of a debt, this right is not affected by the removal and retention of the document by HMRC: SI2005/2045 reg 51(8).

If records are electronically held by the person required to produce them, HMRC must be given all necessary facilities to allow them to access the information: SI2005/2045 reg 51(9).

Contractors and subcontractors must retain all records, which are not required to be sent to HMRC under these regulations, for a period of 3 years from the end of the tax year to which they relate: SI2005/2045 reg 51(10).

ENABLING PROVISION – FA04/S70 (3) & 73(4)