CISR43710 - Gross payment or net payment - Voluntary Arrangement cases

| CISR42600 | Action guide contents | |—————————————————————————————————–|———————–|

This guidance details the various situations you may see in voluntary arrangement cases and sets out how each should be worked.

You should however first of all obtain the information as set out at CISR46130, unless this has already been obtained. Where the subcontractor currently holds gross payment status which is being removed under FA04/s66(1) you must also firstly consider whether the subcontractor has a ‘reasonable excuse’ for the failures identified (see the guidance at CISR49030).

Voluntary Arrangement commenced before the start date of, or during, the ‘qualifying period’ and TTQT has identified compliance failures

Where the voluntary arrangement has not yet ended;

  • telephone the Voluntary Arrangement Service, Worthing, and ask if the terms of the voluntary arrangement have been adhered to
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the voluntary arrangement has been adhered to, you may;

  • make the ‘voluntary arrangement in place’ failure reason ‘Inactive’.

The TTQT will however still ‘fail’ overall if there are compliance failures that are still ‘Active’.

If the voluntary arrangement has not been adhered to,

  • add a note in the ‘Add reason’ window of the function Manage TTQT to say that the terms of the voluntary arrangement have not been kept to, and
  • examine the other failure items identified as part of the TTQT where required.

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Voluntary Arrangement commenced before the start date of, or during, the ‘qualifying period’ and TTQT has identified no compliance failures

Where the voluntary arrangement has not yet ended;

  • telephone the Voluntary Arrangement Service, Worthing, and ask if the terms of the voluntary arrangement have been adhered to
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If they have been, and if the business and turnover tests are also passed, you may;

  • award, or allow, the subcontractor to retain gross payment status
  • make the ‘voluntary arrangement in place’ failure reason ‘Inactive’.

Where exceptionally, the terms of the voluntary arrangement have not been kept to, and yet there are no failures identified by TTQT during the current ‘qualifying period’, then you should treat the compliance test as being passed if the business and turnover tests are also passed. Therefore, you may;

  • award, or allow the subcontractor to retain, gross payment status
  • make the ‘voluntary arrangement in place’ failure reason ‘Inactive’.

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Voluntary Arrangement ended before the start date of the TTQT ‘qualifying period’

You do not need to consider the voluntary arrangement at all, as it does not fall within the ‘qualifying period’ and you should work the TTQT as normal without reference to the Voluntary Arrangement Service, Worthing. You should make the ‘voluntary arrangement in place’ failure reason ‘Inactive’ using the function ‘Manage TTQT’.

Voluntary Arrangement started after the end date of the TTQT ‘qualifying period’

You do not need to consider the voluntary arrangement at all, as it does not fall within the ‘qualifying period’ and you should work the TTQT as normal without reference to the Voluntary Arrangement Service, Worthing. You should make the ‘voluntary arrangement in place’ failure reason ‘Inactive’ using the function ‘Manage TTQT’.