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HMRC internal manual

Construction Industry Scheme Reform Manual

Register and maintain subcontractor: overview: introduction


CISR41600 Action Guide contents


This paragraph serves as an introductory overview regarding the maintenance of a subcontractor record held within CIS, and how to deal with applications to register for either net or gross payment status on forms CIS301 and CIS302 for sole traders, CIS304 for partnerships and trusts, and CIS305 for companies and unincorporated bodies.

Detailed guidance on the changes you can make to a CIS record for a subcontractor are contained in the immediate paragraphs that follow. These will cover changes to a subcontractor’s name, address or telephone number and other designatory details. The paragraphs are arranged so that there is a separate information panel and action guide relating to Sole Trader’s (CISR41020), Partnership’s(CISR41030) and Companies (CISR41040).

The instructions will also cover the issue of application forms for net or gross payment to subcontractors, the method by which subcontractors may submit an application, how any application is handled by HMRC and the tests that have to be passed for a subcontractor to gain gross payment status.

Those subcontractors who have not registered if paid by a contractor for construction work, will have a deduction at a ‘higher rate’ until such time as an application is made to register, and the contractor has obtained a ‘matched verification’ for the subcontractor, see CISR51000 for more on this subject.

HMRC has given an undertaking that all applications for net payment status from subcontractors will be dealt with as soon as possible after receipt, in normal circumstances this should be within 5 working days following receipt of the application.

See the information starting at CISR42010 for detailed guidance of each of the different types of registration applications you could be working.