Register and maintain subcontractor: Appeals against refusal or cancellation of Gross Payment Status: compliance test refusals
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An applicant who is refused gross payment status is required to state the grounds for their appeal within 30 days of the issue of the notice (CIS308) refusing or cancelling gross payment status.
It is important in company cases involving refusals based on FA04/S64(5) directions that the names and addresses of the directors whose records form a part of the reason for refusal are informed of any hearing before the tribunal.
The payment status of a subcontractor who had registered for CIS prior to 6t h April 2007 cut across from the old CIS scheme to the current CIS scheme and determined whether a subcontractor was entitled to gross payment status, dependent upon what their payment status was at 5t h April 2007.
Particular aspects of the conduct of appeals against refusal or cancellation of Gross Payment Status are dealt with in detail in specific information panels available from the information menu. General guidance about the conduct of Tribunal hearings is available in the Appeals, Reviews and Tribunals Guidance (ARTG8200).
You should note that all compliance failures falling within the ‘qualifying period’ for the applicant may be brought out in any Appeal Hearing proceedings, and that you are not restricted to those that appear on the notification to the subcontractor (form CIS308). However it is best practice to make sure that all failures are set out in the decision letter as this will form the basis of HMRC’s case before a tribunal.
In addition where the appeal is against the withdrawal of gross payment status at the Scheduled Review (CISR49000), you may also wish to check that the applicant also passes the Turnover Test. You can do this by checking the level of turnover shown by the latest return received from the applicant. Where the turnover appears to be insufficient you may issue form CIS309 to the applicant to check the level of construction turnover currently being received.