Register and maintain subcontractor: the registration process: Joint Venture applications
|CISR42600||Action guide contents|
Applications from Joint Ventures should broadly be worked in the same way as any application from a Partnership. This is so even where the partners in the Joint Venture are themselves all Limited Companies. The application form CIS304 should be completed as far as is possible, with one of the parties to the Joint Venture being the registering partner and the other parties to the Joint Venture being shown as partners on the application form. In the case of a 50/50 arrangement, either company secretary may sign the application form.
However where the Joint Venture itself is a Limited Company then the companies participating in the Joint Venture will be corporate directors, and in this instance the application form to be completed will be the CIS305 for a Company.
When registering a Joint Venture you must be careful that the Joint Venture is an entity that stands in its own right as a separate and distinct business apart from the businesses of the partners who make up the Joint Venture. Therefore, you should request sight of the Joint Venture agreement between the parties to confirm that there is a Joint Venture in place rather than a ‘JANE’ (Joint Association No Entity) before the registration application is processed. Once you have received the Joint Venture agreement you should proceed as in CISR42730.
To process applications from an unincorporated Joint Venture which is comprised of companies only, you will also need to create a partner Self-Assessment (SA) record for each Limited Company that is a partner, in addition to the Partnership SA record. You do this using the function ‘Set up Company’ and using the company’s COTAX Unique Taxpayer Reference (UTR). Full guidance on how to do this is contained in the National Insurance Procedural Guide at NIPG207190.