Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
, see all updates

Register and maintain subcontractor: the registration process: register company for payment under deduction


CISR42000 Information contents

This action guide explains how to

  • process a company application made on form CIS305 for CIS net registration
  • carry out the Net Registration stages for a company applicant seeking Gross Registration

It assumes that the applicant has already been set up on COTAX following the issue of form CT41G.

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

This procedure involves entry of the UTR in the ‘Identify Customer’ window and other data in the ‘Authenticate Company’ window. This opens the ‘CIS Main Menu’ window pre-populated with the applicant’s detail.

This takes you to the CIS Main Menu

  1. In the ‘CIS Main Menu’, ‘Subcontractor Registrations’ panel
    • Check whether the company is already registered as a subcontractor on CIS, that is, there is a ‘Regd’ entry under ‘Status’ under the ‘Subcontractor Registrations’ heading

  • The company has a registration application pending, that is, there is no entry under ‘Status’ under the heading ‘Subcontractor Registrations’ heading against the particular subcontractors UTR.

If so, write to the applicant saying that they are already registered for net payment (payment under deduction) or an application for registration is already being considered as necessary

  1. Check whether the form CIS305 is complete in all essential respects, that is
    • it is legible and has been signed and dated
    • the following fields have been completed
    • Company name
    • Company registered address
    • Company communication address
    • UTR
    • CRN
    • Date construction work started (or is expected to start)
    • type of construction work done

If the form is complete in all respects, go to Step 4).

If the form is incomplete

  • Mark the entries that are deficient with an ‘X’ in pencil
  • Return the form to the company for completion
  • In the ‘CIS Main Menu’ window, ‘Subcontractor Registrations’ panel
    • Select the ‘As company applicant’ checkbox
    • Select ‘Register subcontractor’ in the ‘Menu’ panel

This takes you to the ‘Company 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 net payment status (payment under deduction) has not been effective, and that they will be subject to deduction at the higher rate.

  1. In the ‘Company Details’ window
    • Select [Next]

This takes you to the ‘Trading Details’ window

  1. In the ‘Trading Details’ window
    • Enter the date entered at Box 7 of the form CIS305 in the ‘Date started …’ field
    • Select the drop-down button in the ‘Type of work in the construction industry’ field. 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 then select “General Builder” from the list supplied.
    • Select from the drop-down list the work-type that most closely matches the entry made at Box 8 of the form CIS305, or if there is no obvious match, select ‘Other’
    • If you have selected ‘Other’ from the list, enter the description taken from Box 8 of form CIS305
    • If there is an entry in Box 9 of form CIS305, enter the name given in the ‘Trading Name’ field
    • If there is an entry at Box 10 of the form CIS305, (company’s trading address) select the [Change Address] button or, if there is no entry, go to Step 8)

This opens the ‘Find Address’ window

  1. In the ‘Find Address’ window
    • Enter the street number or building name of the trading address in the ‘House ID’ field
    • Enter the post code of the trading address in the ‘Postcode’ field
    • Select the [Find] button (this opens the ‘Find Address (2)’ window )
    • Check whether the address given appears in the ‘Details’ panel

If so

  • Select the relevant ‘Details’ panel entry (this inserts that address in the address/postcode fields)
  • Select the [Confirm Address] button (this takes you back to the ‘Trading Details’ window)

If not

  • Enter the address given in the ‘Address/Postcode’ fields
  • Select the [No Match] button (this takes you back to the ‘Trading Details’ window)
  • In the ‘Trading Details’ window
    • Enter the VAT number in the ‘VAT Number’ field if there is an entry at Box 11 of form CIS305,
    • 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 12 on form CIS305 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.
    • Check whether the ‘Yes’ box at Box 13 of form CIS305 contains an ‘X’ and if so, select the checkbox alongside the question ‘Have you been paid as a subcontractor in the construction industry since 6 April 2007’. If ‘No’ is shown at Box12 no entry of this fact will be required, and you may proceed with the application for ‘payment under deduction’ or ‘gross payment’ as appropriate.
    • Check in which of the boxes at Box 14 of the form CIS305 the applicant has entered an ‘X’

If an ‘X’ has been entered against ‘Payment under deduction’ (Box 14)

  • Go to Step 10)

If an ‘X’ has been entered against ‘Gross Payment’ (Box 14)

  • Go to Step 9)
  • In the ‘Trading Details’ window
    • Select the [Apply for Gross] button

This takes you to the ‘Subsidiary Company’ window

  • Go to Step 2 of the Action Guide at CISR42670 – ‘Register Company for Gross Payment (Paper)’
  • Continue registration for gross payment there
  • In the ‘Trading Details’ window
    • Select the [Apply for Net] button
  • This takes you to the ‘Declaration’ window.
    • Select the checkbox at the top right-hand corner of the window
    • Select the [OK] button.

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 - The wording on the ‘Declaration’ window differs between applications for net payment status and applications for gross payment status. There will be no confirmation that registration has been completed.

In the unlikely event that the subcontractor refuses to make the declaration required that the information given above is correct, you will need to select [Cancel] on this window.

  1. If the company reported previous payments in Box 13 of form CIS305
    • Note that you will get a warning – ‘Please remember to search for unmatched verifications’
    • Select the [OK] button (warning message)
    • Select [OK]

This takes you back to the ‘CIS Main menu’ window

  • If you received a warning about Unmatched Verifications, go to CISR51680 for an Action Guide covering this subject.
  • Put the form CIS305 away in the folder CIS31, See CISR18020 regarding maintaining internal records.

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.