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HMRC internal manual

Construction Industry Scheme Reform Manual

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

 

CISR42000 Information contents
   

 

This action guide explains how to

  • process an application for Net Registration made by an unincorporated body on form CIS305
  • carry out the Net Registration stages for an unincorporated body seeking Gross Registration
  1. When notified that an unincorporated body wishes to register for CIS
* Issue form CIS305 to the body’s secretary
* Send a covering letter explaining that

* there is no form prescribed for unincorporated bodies
* the secretary should complete Boxes 1 to 5 inclusive, 7 to 14 inclusive, 52 and 53 showing the body’s details where ‘company’ is referred to
* the secretary should complete boxes 15 to 18 inclusive, 22 to 33 inclusive, 40 to 45 inclusive, and 51 where registration for gross payment is required
  1. On receipt of form CIS305 authenticate the application. See CISR22600 onwards.
  2. In the ‘CIS Main Menu’ check whether the unincorporated body
* is already registered as a subcontractor on CIS, that is, there is a ‘Regd’ entry under ‘Status’ on the ‘As subcontractor’ line

or

* 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 applicant saying that they are already registered for net payment (payment under deduction) or an application for registration is already being considered as necessary

If not, go to Step 4

  1. Check whether the form CIS305 is complete in all essential respects, that is
* that it is legible and has been signed and dated
* that the following fields have been completed

* Body’s name (at Box 1)
* Body’s business address (at Box 2)
* UTR (at Box 3)
* Date construction work started or is expected to start (Box 7)
* type of construction work done (Box 8)

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 company for completion
* resume registration at this point when the form is returned

This takes you to the ‘CIS Main Menu’ window.

  1. In the ‘CIS Main Menu’ window
* Select the ‘As Unincorporated Body’ 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’ in 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, (Trading address) select the [Change Address] button

This opens the ‘Find Address’ window

If there is no entry in Box 10 of form CIS305

* Go to Step 10

This takes you to the ‘Trading Details’ 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 ‘Details’ window

  1. In the ‘Details’ window, in the lower panel
* Select the line for the address matching that quoted by the body so that the colour of the text turns to grey. You may have to scroll on to further pages of addresses here and can do so by selecting one of the numbers 2, 3 and so on, at the bottom of the page.
* Select the [Confirm Address] button

OR

* 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 11 of form CIS305, 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 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 contains an ‘X’ and if so, select the checkbox alongside the question ‘Have you been paid by a contractor 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’

* 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 [CISR42710](https://www.gov.uk/hmrc-internal-manuals/construction-industry-scheme-reform/cisr42710) – ‘Register Unincorporated Body 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.

    • 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 aTax 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.

If the trust reported previous payments in Box 13

* 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](https://www.gov.uk/hmrc-internal-manuals/construction-industry-scheme-reform/cisr51680) for an Action Guide covering this subject.

Put the form CIS305 away in the folder CIS31, see CISR18020regarding 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 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.