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HMRC internal manual

Construction Industry Scheme Reform Manual

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Register and maintain subcontractor: Tax Treatment Qualification Test (TTQT) - Self Assessment re-instated payments on account (POA)

CISR43600 Action guide contents
   

Because of the way information is presented in Self-Assessment (SA), there is no way at present for TTQT to identify re-instated payments on account (POA). These can occur where POA are reduced following a claim received from the customer on form SA303 (see SAM1030) but are then wholly (or partly) re-instated following capture of the Self assessment return for the year. The due date for these re-instated POA becomes 31st January following the year of assessment, but in order to calculate interest correctly SA still uses the original due dates for the POA.

Where the TTQT failures includes re-instated POA’s they will fail the compliance test and the case will be generated on to the ‘Complete SA TTQT manually’ worklist (or ‘Complete CT TTQT manually’ where the failure is in respect of a director or shareholder of a company) as an ‘Unconfirmed’ TTQT. Where you are presented with an ‘Unconfirmed’ TTQT and the failures identified include re-instated POAs that are paid prior to 31st January following the year of assessment you may make that specific failure reason ‘inactive’ instead of a ‘fail’.

If this failure reason is the only one that has been identified by TTQT, that will mean that the TTQT will now ‘pass’. If however there are other ‘failure’ reasons identified then you will need to examine each of these to make sure the failure reason is valid and take the action as set out in the following guidance;

Finalise incomplete Tax Treatment - Sole traders CISR43680
   
Finalise incomplete Tax Treatment - Partnerships CISR43690
Finalise incomplete Tax Treatment - Companies, Unincorporated bodies and Trusts CISR43700