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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: prospective receipts test


CISR44600 Action guide contents


A company or partnership applying for gross payment status is to be regarded as passing the turnover test where it is able to show evidence of

  • relevant payments earned on its own account amounting to at least £30,000


  • the existence of construction contracts entered into where the aggregate value exceeds £200,000.

This test is specified in SI2005/2045 reg 29(2)(d). It is not open to sole traders.

That a company or partnership is seeking or has secured gross payment status on this basis will generally emerge where

  • it, or its representatives, seek guidance about this provision at the time of application


  • it comes to light in the course of the Post-Acceptance Check that the turnover figure entered on the application form was calculated on this basis.

In either case you should substantiate the turnover figures by

  • looking for evidence of actual turnover of the kind described in CISR44050 (Checking gross turnover figures)
  • asking for sight of contracts that established the expectation of future turnover at the date of application.

If you find that in the course of a Post-Acceptance Check the applicant is unable to produce acceptable evidence of prospective turnover satisfying this test you should consider:

  • cancelling the applicant’s gross payment status (See CISR43610) for guidance about this
  • submitting the case to CIS Advisory Team (See CISR97030) to consider penalty proceedings.