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HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
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Register and maintain subcontractor: turnover test: introduction

CISR44600 Action guide contents

The turnover test is one of the statutory tests a subcontractor must pass to gain gross payment status under CIS. This section of the guidance covers applying the test, interaction with the CISR system and related issues.

Particular areas covered are

  • how the test is applied at subcontractor registration
  • evidence checks made subsequently (referred to as Post-Acceptance Evidence Checks)
  • explanation’s of the tests and terms used.

Note that even though an application fails the turnover test, the other statutory tests, the business and compliance tests, must still be carried out. However, the CISR system will not be able to carry out the Compliance Test automatically once the Turnover Test has failed as the application stops at that point. You will therefore need to request an ‘Information only’ TTQT (see CISR43160) to identify whether the Compliance Test is also passed or failed. If an appeal is made against the refusal of gross payment status all relevant grounds of refusal must be identified to the applicant.

Although this section focuses on the turnover test, this test is generally carried out at the same time as the business test.