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HMRC internal manual

Construction Industry Scheme Reform Manual

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Register and maintain subcontractor: appeals against refusal or cancellation of gross payment status: Subcontractor takes up the offer of an Internal Review

CISR48000 Information contents
   

Where the appellant asks for a review, that request should be made in writing to the review office. The review office will call for the decision maker’s papers to enable them to carry out a review as detailed in ARTG4000. Once the review is completed, the review officer will send the appellant a review conclusion letter.

Any request for an internal review received by the decision maker should be passed to the review office with the decision maker’s papers to carry out the review. It will be necessary for you to take the following actions in CISR, depending on the stage the internal review has reached as shown below.

The subcontractor takes up the offer of an internal review

You should update the status of the appeal in CISR as follows. In the ‘Appeal Details’ window under the bar entitled ‘Maintain Appeal Details’ from the drop-down menu alongside ‘Appeal Progress’

  • select ‘Being Reviewed’
  • select the ‘Add notes’ button, and make any notes necessary regarding the take up of the internal review and which review office is conducting the internal review, remembering to enter your Pay Identity number (PID) as the author of the note, (see CISR48720 for more information regarding this)
  • select [Back] on the ‘Appeal notes’ window
  • select [OK] on the ‘Appeal Details’ window.

This will update the CISR record, but no output will be generated from CISR to the subcontractor.

Important During the period of the internal review if it is some time since the automated TTQT was run, the review officer should request an ‘Information only’ Tax Treatment Qualification Test (TTQT), see CISR43160. This will inform you whether the subcontractor has kept up with their compliance obligations since the date of the automated TTQT, and will inform you as to whether the ‘reason to expect’ test (see CISR46100) is also passed. This can then be used as further evidence for the internal review.

Review officer decides that the grounds for the appeal are valid

If the review officer decides that the grounds for appeal against the refusal or cancellation of gross payment status are valid, they will send the appellant a review conclusion letter (see CISR48050 and ARTG4820). The Review Officer will then need to take the actions set out in CISR48660 to uphold the subcontractor’s appeal.

Review officer decides that the grounds for the appeal cannot be sustained

If the review officer decides that the grounds for appeal against the refusal or cancellation of gross payment status cannot be sustained, they will send the appellant a review conclusion letter (see CISR48050 and ARTG4820).

You should update the status of the appeal in CISR as follows. In the ‘Appeal Details’ window under the bar entitled ‘Maintain Appeal Details’ from the drop-down menu alongside ‘Appeal Progress’

  • the ‘Appeal status’ will show ‘Being Reviewed’ and you should leave this as it is
  • select the ‘Add notes’ button, and make any notes necessary regarding the result of the internal review and the date the review conclusion letter was issued, remembering to enter your Pay Identity number (PID) as the author of the note, (see CISR48720 for more information regarding this)
  • select [Back] on the ‘Appeal notes’ window
  • select [OK] on the ‘Appeal Details’ window.

This will update the CISR record, but no output will be generated from CISR to the subcontractor. You will now need to BF the case for 45 days to see whether the subcontractor decides to make an appeal to the Tribunal within 30 days of the review conclusion letter, and then take the action below.

Subcontractor decides to accept the result of the Review Conclusion letter and does not appeal to the Tribunal

Having waited 45 days to see whether the subcontractor decides to make an appeal to the Tribunal you must take the following steps in CISR. In the ‘Appeal Details’ window under the bar entitled ‘Maintain Appeal Details’ from the drop-down menu alongside ‘Appeal Progress’

  • select ‘Withdrawn’
  • enter today’s date in the ‘Date of Determination’ field
  • make an entry of the District Record (DR) reference of where the appeal papers are to be filed
  • select the ‘Add notes’ button, and make any notes necessary regarding the fact that the subcontractor has not made an appeal to the Tribunal, remembering to enter your Pay Identity number (PID) as the author of the note, (see CISR48720 for more information regarding this)
  • take a screen print of the notes page relating to the appeal after you have made your note, and file this screen print with the appeal papers, see the instruction at CISR48720 on how to do this
  • select [Back] on the ‘Appeal notes’ window
  • select the [Appellant Details] button on the ‘Appeal Details’ window
  • select [OK] on the ‘Appellant Details’ window.

CISR will have already maintained (or restored) gross payment status to the subcontractor when the appeal was logged. If the appeal is withdrawn at any time from the date of the Tax Treatment Qualifying Test (TTQT) and up to day 60 after that date, then the tax treatment will change to net at the original date specified (day 90 after the date of the TTQT). If the appeal however is withdrawn after day 60, then the tax treatment will change to net 30 days after the date the appeal is withdrawn.

CISR will issue a notification (CIS320) to the subcontractor informing them of the outcome and determine the appeal under TMA70/S54. The subcontractor will not be able to hold gross payment status for 12 months from the date of change to net tax treatment. This does not prevent the subcontractor from making an application for gross tax treatment during this period, but any such application made will not be successful until the time bar has expired.