This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Construction Industry Scheme Reform Manual

Register and maintain subcontractor: scheduled review: Finalising an ‘Incomplete’ scheduled review TTQT

CISR49600 Action guide contents

Once a Scheduled Review has taken place, and the result from the Tax Treatment Qualification Test (TTQT) is a “Fail”, the case will first be generated onto an ‘Incomplete’ TTQT worklist. There are two separate worklists - one for Self-Assessment subcontractors and another for Corporation Tax subcontractors. Responsibility for these worklists falls as follows;

Sole Traders or partners in a Partnership CIS Centre, Newry
Companies CT CIS Centre, Hull.

From the worklist, a manual check is first carried out on the case to confirm that the failure reasons already found by the computer are valid.

Before the TTQT can be finalised as a ‘fail’ for a subcontractor who already holds gross payment status, you will need to find out from the subcontractor the reasons why the identified failure(s) occurred (the action guide at CISR49610explains how to do this).

This is so that you can establish whether or not the subcontractor had a ‘reasonable excuse’ (see CISR81020) for the failure(s), and this will allow you to decide whether or not gross payment status should be withdrawn in this instance. The guidance to follow for each typwe of subcontractor is set out in the action guides in the table below;

CISR49620 Finalising an ‘Incomplete’ scheduled review TTQT - sole traders
CISR49630 Finalising an ‘Incomplete’ scheduled review TTQT - partners in a partnership
CISR49640 Finalising an ‘Incomplete’ scheduled review TTQT - companies

If you consider that the reasons for the failures do not amount to a ‘reasonable excuse’, or the subcontractor does not respond to your enquiry, you may confirm the TTQT result as a ‘fail’ by using the function ‘Manage TTQT’ (see CISR43600).

When confirming the result as a ‘fail’ you must ensure that none of the failures identified by TTQT are now more than 12 months before the date you are finalising the TTQT. Any failures that are more than 12 months old should be made ‘Not active’. This may result in the failures now being within the exceptions allowed for in SI2005/2045 reg 32, in which case the TTQT will now ‘pass’ and gross payment status may continue until the next annual review.