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HMRC internal manual

Construction Industry Scheme Reform Manual

Register and maintain subcontractor: gross payment or payment under deduction: change in the type of concern

CISR43600 Action guide contents

In the guidance that follows we use the term concern to mean a business entity, so that it includes sole trader subcontractors, partnerships and companies. Where the CIS Registration Team at NICEO receives an application involving a change in the type of concern (for example, where the members of the partnership has changed, or where previously registered sole traders have now formed a partnership), these will be referred (with a covering memo) to the CIS Centre, Newry, to arrange action is taken on Self Assessment (SA) to ensure that the SA record is updated, see the Self Assessment Manual (SAM) at SAM101000. Once the SA record has been updated the CIS Centre, Newry should then continue to process the Registration application from the partnership for either net or gross payment status, and these should not be referred back to the CIS Team at NICEO.

No change in type

Where the number of partners within an existing partnership, or the directors or shareholders in an existing company changes then there is no change here in the type of concern. New partners wishing to apply for gross payment status on behalf of a partnership will be subject to the compliance test. Where new non-compliant directors or shareholders are appointed to an existing company holding gross payment status you should request an ad-hoc TTQT in order to highlight the failures of the new appointees (you may have to identify the failures for these individuals manually), you will however first need to make a direction under FA04/s64(5) (see CISR46110).

Change in type of concern

Separate information panels give more detail on each of the following specific changes in type of concern. General information applicable to all cases can be found in the rest of this panel. Use the links below to view specific details for each case.

CISR43210 Sole traders or partnerships becoming companies
CISR43220 Sole traders becoming partnerships
CISR43230 Two or more sole traders or partnerships merging to form a new partnership
CISR43240 Two or more sole traders or partnerships merging to form a new company
CISR42050 Partnerships becoming two sole traders

In any of the above cases, a change of concern of a different type is created which will need to re-register either for gross or net payment status. The applicant should inform HMRC of the details of the change and make an application to re-register for either gross or net payment status.

Which turnover test the new concern uses depends on the circumstances of the change in concern. Further information can be found at

CISR44190 Inherited receipts test
CISR44200 Transferred receipts test