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HMRC internal manual

Construction Industry Scheme Reform Manual

The Scheme: secondary legislation: regulation 52

This regulation deals with additional provisions for the inspection of subcontractor records.

Subcontractors on net payment status must maintain the records specified in (2) and must produce these as required by HMRC for inspection. This to be done at a prescribed place and within a reasonable timescale: SI2005/2045 reg 52(1)(a) and (b).

The subcontractor must keep a record of the full amount of tax due to HMRC in the preceding 3 years, and a record of amounts deducted from payments made to them by contractors under FA04/S61: SI2005/2045 reg 52(2)(a) and (b).

A definition of ‘prescribed place’ can be found at SI2005/2045 reg 52(3).

HMRC may take copies or extracts from documents produced by the subcontractor for inspection in accordance with (1)(b) and, if necessary, may retain an original document for a reasonable period of time: SI2005/2045 reg 52(4)(a) and (b).

If another person has the right to retain the document in place of the payment of a debt, this right is not affected by the retention of the document by HMRC: SI2005/2045 reg 52(5).

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 52(6).