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HMRC internal manual

Construction Industry Scheme Reform Manual

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


CISR42000 Information contents


This action guide explains how to

  • process a trust application for Payment Under Deduction made on form CIS304
  • carry out the Payment Under Deduction Registration stages for a trust applicant seeking Gross Registration
  1. When notified that the trust wishes to register for CIS
* Issue form CIS304 to the trustee
* Send a covering letter explaining that

* there is no form prescribed for trusts
* the trustee should complete Boxes 8 to 14 inclusive, 20, 34 and 35 showing trust details where 'partnership' is referred to
* the trustee should also complete boxes 29 to 33 inclusive where registration for gross payment is required
* the trustee should complete Boxes 1 to 7, showing their own details where 'registering partner' is referred to
  1. On receipt of form CIS304 relating to a trust, authenticate the application using the action guide at CISR22600.
  2. In the ‘CIS Main Menu’ check whether the trust
* is already registered as a subcontractor on CIS, that is, there is a ‘Regd’ entry under ‘Status’ under the 'Subcontractor Registrations' heading.


* has a registration application pending, that is, there is no entry under ‘Status’ under the heading 'Subcontractor Registrations' against this particular subcontractor’s UTR.

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

If not, go to Step 4

  1. Check whether the form CIS304 is complete in all essential respects, that is
* it is legible and has been signed and dated
* all of the boxes on the CIS304 mentioned at Step 1 have been completed

If the form is complete in all respects, go to Step 5.

If the form is incomplete

* mark the entries that are deficient with an ‘X’ in pencil
* return the form to the trust for completion
  1. In the ‘CIS Main Menu’ window
* Select the ‘As trust’ checkbox in the ‘Registration’ panel
* Select ‘Register subcontractor’ in the ‘Menu’ panel

This takes you to the ‘Trust 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 ‘Trust Details’ window
* Select the [Next] button

This takes you to the ‘Trading Details’ window

  1. In the ‘Trading Details’ window
* Enter the date entered at Box 13 of the form CIS304 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 14 of the form CIS304, or if there is no obvious match, select ‘Other’
* If you have selected ‘Other’ in the list, enter the description taken from Box 14 of form CIS304
* If there is an entry in Box 15 of form CIS304, enter the name given in the ‘Trading Name’ field
* Check whether there is an entry at Box 16 of the form CIS304, ('partnership trading address)

If so

* Select the [Change Address] button (this takes you to the ‘Find Address’ window)
* Go to Step 8)

If not

* Go to Step 10)
  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

  1. In the ‘Find Address (2)’’ window, in the lower panel
* Select the checkbox for the address matching that quoted by the trust
* Select the [Confirm Address] button


* If there is no match in the lower panel, select the [No Match] button

This takes you back to the ‘Trading Details’ window

  1. In the ‘Trading Details’ window
* If there is an entry at Box 17 of form CIS304, enter the VAT number in the ‘VAT Number’ field
* 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.
* If the ‘Yes’ box at Box 19 contains an ‘X’, select the checkbox alongside the question ‘Has the partnership been paid as a subcontractor in the construction industry since 6 April 2007’. If ‘No’ is shown at Box19 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 20 of the form CIS304 the applicant has entered an ‘X’

If an ‘X’ has been entered against ‘Payment under deduction’

* Go to Step 12

If an ‘X’ has been entered against ‘Gross Payment’

* Go to Step 11
  1. In the ‘Trading Details’ window
* Select the [Apply for Gross] button

This takes you to the ‘Turnover Details’ window

* Go to Step 2 of the Action Guide at [CISR42690]( – ‘Register Trust for Gross Payment’
* Continue registration for gross payment there
  1. In the ‘Trading Details’ window
* Select the [Apply for Net] button

* This takes you to the ‘Declaration’ window
  1. In 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 that the wording on the ‘Declaration’ window differs between applications for net payment status and applications for gross payment status.

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 trust reported previous payments in Box 19 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 CISR51680for the Action Guide covering this subject.

* Put the form CIS304 away in the folder CIS31, see [CISR18020]( regarding maintaining internal records.

If the contact requires you to carry out further Registrations, then select the [NewCustomer] 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 anew customer is to be retrieved within the same contact”, this message is merely toconfirm 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.