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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: preliminary check

 

CISR44600 Action guide contents
   

Although any checks to be undertaken on the subcontractor’s turnover figures shown on the application form will be post-acceptance, see CISR44040 that does not mean you should accept any turnover figures that appear incorrect. If the subcontractor’s turnover looks incorrect, you should query the entry with the subcontractor before proceeding with the application form. Examples of this could be where the subcontractor has “inflated” the turnover figure by including the cost of materials bought, and it is clear from the application form and any enclosures that this is what they have done. Or simply, that the subcontractor has made a mathematical error, and the total of their receipts actually come to a lower figure than that which has been recorded on the application form.

Where you query the figures on the application form with the subcontractor, and they insist that they are correct, then you have no option but to process the application using the figures as supplied by the subcontractor. Any check done on the application will then feature as part of the post-acceptance checks. If you suspect a subcontractor of committing fraud in connection with the Turnover Test, then after processing the application as submitted you may send the application with a formal submission to the CIS Advisory Team (See CISR97030) with the reasons for your suspicions.