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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: turnover test: applying the turnover test

CISR44600 Action guide contents
   

Applying the turnover test involves comparing the applicant subcontractor’s netconstruction turnover in the qualifying period with a threshold figure set in law. Thequalifying period is the 12 months preceding the date of application, and the monetarythreshold varies according to

  • the class of the business (whether a sole trader, partnership or company),
  • the number of its participants,
  • whether construction work (or supplying labour for such) is its main trading activity

The turnover test breaks down into 7 tests referred to in this guidance as

These tests are described in more detail in the topics devoted to them.

Evidence checks

Initially, turnover figures taken from an application form (or captured on line) willbe accepted for carrying out the turnover test. Where the result is a pass (and theapplicant passes the other statutory tests) gross payment status will be grantedprovisionally. At a later stage a proportion of applicants assigned gross payment statuswill be required to supply detailed evidence to substantiate the information entered onthe application form or captured in a telephone application. See CISR44030and CISR44040 for more detail on this.