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HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
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Register and maintain subcontractor: business test: new partnerships

CISR45600 Action guide contents

Where you come across cases involving new partnerships or changes in the constitutionof an existing partnership, it may be relevant to question whether or not there is agenuine partnership in existence. Such cases should be referred to a Higher Officer forconsideration.

Conditions for the acceptance of the existence of a genuine partnership are that

  • the individuals claiming to be in partnership agree between themselves about the business address and the persons considered to be partners, and
  • they appear to have some understanding of the relationship into which they claim to have entered.

Where you are not satisfied that a genuine partnership exists you should inform theapplicant partnership accordingly. If, however, you are satisfied that a partnershipexists between some of them though not others, you should say so.

You should also say in what capacity (that is, partner or sole trader) you consider that afresh application may be made by each applicant, you may, at your discretion; indicate thelikely outcome of such an application. This guidance applies to new husband and wifepartnerships in the same way as to other partnerships.