CISR43050 - Register and maintain subcontractor: gross payment or payment under deduction: changing a subcontractor's tax treatment from net to gross
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A subcontractor’s tax treatment may be changed from ‘Net’ to ‘Gross’:
- where the subcontractor successfully passed the turnover test, business test and compliance test.
as the result of a successful appeal by the subcontractor against ‘Net’ payment status.
- When a subcontractor’s tax treatment changes from net to gross a notification of the change (CIS316) is immediately sent to all Contractor Schemes who have either paid or verified the subcontractor during the current and two previous complete income tax years.
- A subcontractor will not be able to apply to change from net to gross payment if a ‘‘live’’ exclusion period has not ended. An ‘‘exclusion period’’ will begin on the day that gross payment status was removed, and will continue for a twelve month period from this date.