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HMRC internal manual

Construction Industry Scheme Reform Manual

Register and maintain subcontractor: Registration of subcontractors by NICO or the CT CIS Centre Hull where payments have already been made to the subcontractor or company subcontractor within CIS

CISR42600 Action guide contents

As the guidance at CISR42050 and CISR42060 explains, the registration process for individuals and the majority of partnerships is carried out by NICO, and for companies, by the CT CIS Centre, Hull. When completing the registration forms for an individual (CIS301 or CIS302) a partnership (CIS304), or a company (CIS305) the applicant is asked on the form whether they have already been paid as a subcontractor since 6t h April 2007. If they have, the applicant is asked to mark the appropriate box on the form with an ‘X’.

Where NICO are registering the subcontractor or the CT CIS Centre, Hull are registering a company subcontractor, and this box has been completed on the application form, they will pass a photocopy of the registration application across to the CIS Centre at Newry for further action.

Newry will then use the function ‘Unmatched Verifications’ to search for any contractor(s) who may have attempted to verify the subcontractor prior to their CIS registration. Where that action reveals contractors that have attempted to verify the subcontractor, the CIS Centre at Newry will take the action as detailed at CISR42740.

Where no associated contractors are found using the ‘Unmatched Verification’ function, then the CIS Centre at Newry will send a letter RG1 (see CISR96020) to the subcontractor asking for details of whom they have been paid by and for what periods. No BF will be placed following the issue of this letter with the onus being on the subcontractor to reply. The letter warns that if no response is received, the subcontractor may not be given full credit for all of the CIS deductions that have been made from their payments.

Once the ‘Correct Error on Return’ function has been completed this action will force the payment details for the subcontractor on the contractor’s return across to the ‘payment details’ window on the subcontractor’s recently registered record. This will mean that the subcontractor’s record will then have a complete list of all the payments made to them together with any deductions made from those payments.