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HMRC internal manual

Construction Industry Scheme Reform Manual

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HM Revenue & Customs
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Register and maintain subcontractor: gross payment or payment under deduction: 'Information only' Tax Treatment Qualification Test (TTQT)

CISR43000 Information contents
   

As from 15t h October 2007, there is a facility to run an ‘Information only’ Tax Treatment Qualification Test (TTQT). This can be requested for any reason but could include where perhaps you felt that the subcontractor was not meeting their compliance obligations and you are conducting an Employer Compliance review.

This function should also be used where the subcontractor has appealed against the decision to refuse to grant gross payment status, or has requested an internal review of the decision made, or has made an appeal to the Tribunal and that appeal is about to be heard by the Tribunal. This is so that you have a current picture of the applicant’s compliance record that can be used to see whether the ‘Reason to Expect’ test (CISR46100) is also passed.

Requesting an ‘Information only’ TTQT may help to illustrate that the subcontractor is continuing to fail to meet their compliance obligations even after the date the automated TTQT was run. There is no output issued by CISR to either the subcontractor or the various contractors following the request of an ‘Information only’ TTQT.

There are circumstances where an ‘Information-only’ TTQT cannot be requested and for details of these see CISR43160 for further information.

To Request an ‘Information only’ TTQT, from the CIS Main menu

  • Select [Manage TTQT]

This will take you to the ‘Tax Treatment Details’ window. Here you will find displayed the following information:

* Current Tax Treatment - Net or Gross
* Tax Treatment under appeal - Yes or No
* Date Next TTQT - The date of the next annual scheduled review of the subcontractor’s tax treatment where gross payment status is held.
* TTQT results pending for - this will show you whether the subcontractor has made a request for gross payment status, for which the result of the TTQT is still pending.
* Request date - this will show the date of the request where the subcontractor has made an application for gross payment status already, for which the result of the TTQT is still pending.

Under the title bar ‘Tax Treatment History’ on this window you will also find displayed

* The start and any end date of a particular type of tax treatment
* The Tax Treatment either Net or Gross
* The reason that prompted the change in Tax Treatment, examples are on Registration or Annual (Scheduled) Review.

Finally on this window will be displayed the TTQT History, under this title bar will be displayed

* Date - The date the TTQT was requested.
* Type - This field will usually be blank, unless a previous TTQT came back with the result of 'Incomplete', in which case 'Manual' will appear here to indicate that the previous TTQT was completed manually.
* Result - The result of the TTQT either Pass or Fail.
* Status - The status of the TTQT result either confirmed or unconfirmed.
* Test Type - The type of occasion for which the TTQT was requested, either on first Registration, Request change of Tax Treatment or on Tax Treatment Scheduled Review.

To request an ‘Information only’ TTQT

  • Select the [Run Information only] button at the bottom of the window

A message window will then be displayed with the message ‘Results will be available in View Customer, usually after 24 hours’.

  • Select [OK]

You will now be taken back to the CIS Main Menu having completed your request.