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HMRC internal manual

Construction Industry Scheme Reform Manual

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HM Revenue & Customs
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Register and maintain subcontractor: the registration process: register partnership for payment under deduction

CISR42000  Information contents
   

This Action Guide explains how to process an application made on form CIS304 for CIS registration made by a partnership.

Only one partner can complete the form and they are known as the registering partner. That partner must be registered for SA otherwise the application cannot proceed.

Before commencing the registration process you need to check that the application is legible and signed.

The following fields must be correctly completed:

  • Registering partner’s name
  • Registering partner’s address
  • Registering partner’s UTR
  • Registering partner’s NINO (or CRN if a company)
  • Partnership name
  • Partnership Address
  • Partnership UTR
  • The date the partnership started or plans to start Construction Operations in the UK.
  • Type of work the partnership does

If the form is incomplete in some respects but includes a NINO entry, mark the entries that are deficient with an ‘X’ in pencil and return the form to the applicant for completion.

If the form is incomplete and the NINO is among the omitted entries, mark the deficient entries with an ‘X’ in pencil and write to the applicant

  • returning the form
  • asking them to complete the omitted entries, and make an appointment for a mobile adviser to meet with them for an ID check, bringing with them evidence of identity (See CISR42150).

Once the Identity check has been completed pass the now complete form to the CIS Team at the National Insurance Contributions Office (NICO) who will then process the registration application in the normal manner.

Where the form is being returned to the applicant by the CIS Team at NICO the registration application will be returned with a covering template letter (CIS366) which highlights the missing information required.

Resume registration when/if the amended form is returned.

If the information is complete you should proceed to registration.

  1. Authenticate the application using the Action Guide at CISR22600 onwards.

This will take you to the CIS Main Menu

  1. In CIS Main Menu -you must first check the box in the left hand column for the partnership you want to register (in case there is more than one shown) and select ‘Register Subcontractor’.

This will take you to the ‘Register Subcontractor’ - ‘Registering Partner Details’ window.

At any time during the process a [Cancel] button is available to you in the bottom right hand corner of the window you are in. Selecting this will completely cancel the action you have taken so far and will return you to the CIS Main menu, the subcontractor should be advised that their registration for payment under deduction has not been effective, and that they will be subject to deduction at the higher rate.

  1. Input the registering partner’s name, address, telephone number and UTR as shown in boxes 1 to 7 of form CIS304.
  2. Select [Next]

This will take you to the ‘Partnership Details’ window.

The information required to complete the fields is shown on page 2 of form CIS304.

  1. You should record the daytime telephone number on the window.
  2. When all information is input select [Next]

This will take you to the ‘Trading Details’ window.

The information required to complete this window is also found on page 2 of form CIS304.

  1. The date started or plan to start in the construction industry is found at box 13.
  2. The type of work the business undertakes is found at box 14. The window provides a drop down menu list. The list provides for the most commonly occurring trades within the Construction Industry. You should select the appropriate type of work. If there is no pre-set description of the work being done you should select ‘other’ and enter the details from box 14 into the free form box on window. If the subcontractor does not know the type of construction work they have been contracted for, after checking that the contract is not one of employment, you should select ”General Builder” from the list supplied.
  3. Input the Partnership Trading name from Box 15 of form CIS304.
  4. Input the Partnership trading address. This will be as shown in box 16. If there is no entry at box 16 you should input the address as shown in box 9.
  5. Input the VAT number as shown in box 17.
  6. If the applicant has recorded, at box 19, that they have been paid as a subcontractor in the construction industry since 6 April 2007 you should select this box on the window. If “No” is shown at box 19 no entry of this fact will be required and you may proceed with the application for “payment under deduction” or “gross payment” as appropriate.
  7. The agent for whom an authorisation form is already held should automatically be shown in the Agents details box. If the applicant has confirmed at Box 18 on form CIS304 that they wish to use the existing agent for the Construction Industry Scheme you should select the appropriate box. . If ‘yes’ is already selected against the agent you need take no further action.
  8. If the applicant has recorded that they wish to apply for Payment Under Deduction at box 20 of form CIS304 select [Apply for Net].

If the applicant has recorded that they wish to be registered for ‘Gross Payment’ please refer to CISR42650 for the Action Guide.

  1. If you have recorded that the applicant has been paid as a subcontractor since 6 April 2007 a reminder will be shown on screen that there are unmatched verifications that need to be dealt with. Please see Action Guide CISR51660 for help on how to deal with unmatched verifications.
  2. You will then be presented with the declaration window.
* Select the [OK] button this will take you back to the CIS main menu.

You should check again that the declaration has been signed before selecting the confirmation box at the top right of the window. If the application is being made by paper, the application form must be signed by the subcontractor, it cannot be signed by a Tax adviser on the subcontractor’s behalf.

Note that the wording on the ‘Declaration’ window differs between applications for net payment status and applications for gross payment status.

The applicant will now be registered for ‘Net’ payment in the Construction Industry Scheme. The system will automatically issue form CIS313 advising the applicant that they have successfully registered for the Construction Industry Scheme.

In the unlikely event that the subcontractor refuses to make the declaration required that the information given is correct, you will need to select [Cancel] on this window. The system will automatically record the action on View contact history.

If the contact requires you to carry out further Registrations, then select the [New Customer] button, if however they do not then if you select the [End Contact] button this will take you back to the Identify Customer window. When selecting the [New Customer] button a message is displayed stating “Click on the [New Customer] button again if a new customer is to be retrieved within the same contact”, this message is merely to confirm that you wish to view another customers CIS record within the same contact. If you do not then you should select the [End Contact] button instead.