Register and maintain subcontractor: compliance test: partnerships
|CISR46600||Action guide contents|
To satisfy the compliance test the partnership and all the partners must have done all the following during the 12 months prior to the date of application (the qualifying period)
- Sent in all returns due
- Complied with all requests for accounts or other relevant information
- Paid on time all tax and Class 4 NICs including any interest, penalty or surcharge, and also including all PAYE and CIS deductions due in the role of employer/contractor. Any obligation paid late or still outstanding that is £99.99 or less under any of these categories and any interest in respect of Corporation Tax or Self Assessment paid late or still outstanding (irrespective of the amount) during the ‘qualifying period’ will be treated as meeting the compliance test.
- Complied with all other relevant obligations under ICTA88 and TMA70
For further detailed information regarding the failures that may or may not be accepted for the purposes of the compliance test see;
|CISR46060||Main reasons for failure|
Finally, there must be ‘reason to expect’ that the applicant will continue to comply with tax obligations. (See CISR46100for more details on the ‘Reason to expect’ test).
You may ignore certain failures to comply with the above conditions where
- The partnership or partner had a ‘reasonable excuse’ for the failure to comply
- Once the excuse ceased to apply, the partnership or partner then complied with the obligation without unreasonable delay
See CISR81020 for more information about what can be regarded as reasonable excuse.
The legal requirement is note merely that the applicant must have fulfilled tax obligations arising in the 12-month qualifying period preceding the date of application. Those obligations must, in addition, have been fulfilled within the time allowed in law else this requirement is not satisfied and the applicant fails the compliance test.
However, there are certain tolerances specified in the regulations whereby HMRC will overlook a compliance breach. See CISR46080 for more information about these tolerances.
See CISR18140 for information on partners with
- Voluntary arrangements
- Informal arrangements