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HMRC internal manual

Construction Industry Scheme Reform Manual

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HM Revenue & Customs
Updated
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Register and maintain subcontractor: compliance test: main reasons for failure

CISR46600 Action guide contents
   

The following is a guide to the main reasons for refusing an application for gross payment status.

Non-payment of tax

Any of the following means a failed compliance test

  • formal proceedings have been taken to recover unpaid liabilities falling due in the qualifying period, including cases where the tax is eventually written off
  • an investigation has revealed general tax irregularities in respect of obligations imposed in the qualifying period and outstanding liability or payments under an instalment offer have lapsed
  • a PAYE//NICs/CIS remittance is outstanding of £100 or more and the due date was more than 14 days ago
  • an income tax payment of £100 or more is outstanding and the due date was more than 28 days ago
  • a penalty or surcharge of £100 or more is outstanding and the due date has passed.
  • a corporation tax payment of £100 or more is outstanding and the due date was more than 28 days ago

Late payments

Any of the following means a failed compliance test

  • any PAYE//NICs/CIS remittance of £100 or more within the preceding 12 months was paid more than 14 days after the due date, or more than 3 remittances of £100 or more are paid late but within 14 days of the due date
  • any income tax payment of £100 or more within the preceding 12 months was paid more than 28 days after the due date, or more than 1 payment of £100 or more was made after the due date but no later than 28 days late
  • a penalty or surcharge of £100 or more was paid after the due date.
  • any corporation tax payment of £100 or more within the preceding 12 months was paid more than 28 days after the due date.

Returns

Any of the following means a failed compliance test

  • Four or more late submissions of the contractor’s monthly return CIS300 within the preceding 12 months where the returns were less than 28 days late
  • Any submission of the contractor’s monthly return CIS300 within the preceding 12 months made later than 28 days after the due date
  • A contractor’s monthly return already due but remaining outstanding at the date of application
  • Any SA return due in the qualifying period but outstanding at the date of application
  • Any Corporation Tax return (CT600) due in the qualifying period but outstanding at the date of application