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HMRC internal manual

Construction Industry Scheme Reform Manual

The Scheme: secondary legislation: SI2009/56

This Statutory Instrument amends FA04 and SI2005/2045 and the revised text(s) for the Construction Industry Scheme section of this act, and the statutory instrument are as follows;

Finance Act 2004

Section 59

Section 59(4)(b) now reads;

‘Where only a part of the trade is transferred, the expenditure is apportioned in such a manner as appears to the Board of Inland Revenue, or on appeal to the tribunal, to be just and reasonable’.

Section 67

Section 67(1) now reads;

‘A person aggrieved by-

  1. the refusal of an application for registration for gross payment, or
  2. the cancellation of his registration for gross payment,

may by notice appeal’

Section 67(4) now reads;

‘The jurisdiction of the tribunal on such an appeal shall include jurisdiction to review any relevant decision taken by the Board of Inland Revenue in the exercise of their functions under section 63, 64, 65 or 66.’

Section 67(5) now reads;

‘Where a person appeals against the cancellation of his registration for gross payment by virtue of a determination under Section 66(1), the cancellation of his registration does not take effect until whichever is the latest of the following-

  1. the abandonment of the appeal
  2. the determination of the appeal by the tribunal, or
  3. the determination of the appeal by the Upper Tribunal or a court

Section 67(6) is deleted completely


Regulation 2 (interpretation)

Omit the entry for ‘tax appeal Commissioners means the General Commissioners or Special Commissioners as the case may be’


‘‘tribunal’ means the Fist Tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal’

Regulation 9 (Recovery from sub-contractor of amount not deducted by contractor)

Paragraph 9 now reads;

‘If on an appeal under paragraph (7) that is notified to the tribunal it appears that the refusal notice should not have been issued the tribunal may direct that an officer of Revenue and Customs make a direction under paragraph (5) in an amount the tribunal determines is the excess for one or more tax periods falling within the relevant year’

Regulation 13 (Determination of amounts payable by contractor and appeal against determination)

Paragraph 6 now reads;

‘If paragraph (1)(a) applies and an officer of Revenue and Customs does not make a determination under paragraph (2), either the contractor or the subcontractor may on giving notice to an officer of Revenue and Customs, apply to the tribunal to determine the matter’.

Paragraph 7 is deleted completely

Regulation 25 (Registration for gross payment or payment under deduction and cancellation of registration for payment under deduction)

Paragraph 6 is deleted completely

Regulation 59 (Appeals: supplementary provisions)

Paragraph 1 now reads;

‘Section 31A(5) and (6) of TMA applies to appeals under regulation 47 (default notice and appeal) as it appeals to an appeal under section 31 of that act’.

Paragraphs 2 and 3 are deleted completely