The Scheme: miscellaneous: company liquidations
|CISR18600||Action guide contents|
Company liquidations may be compulsory or voluntary and in either case this event usually leads to the cessation of trade. However, you do require confirmation of this and should write to the liquidator to establish the position as described in the action guide at CISR18620.
Where you become aware that a company subcontractor holding gross payment status has been made insolvent, you should run an “ad-hoc” TTQT. This will inform you that if a TTQT was run now whether CISR would still allow the subcontractor to continue with gross payment status. An “ad-hoc” TTQT is run by using the function “Manage TTQT”, see CISR43650 for guidance on the use of this function.
Continued trading - contractor schemes
Where, unusually, a company in liquidation continues to operate as a going concern for a period it may engage subcontractors. If it does, the Employers Section for the company in liquidation will open a new P(SC) or XP scheme in the name of the liquidator (INS2205). For the purposes of CIS you should treat this as an additional scheme associated with the contractor company. The Centralised Employers Team, NICEO will need to link the contractor’s CIS taxpayer record with the new EBS scheme as a second scheme.