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HMRC internal manual

Construction Industry Scheme Reform Manual

Register and maintain subcontractor: scheduled review: withdrawal of gross payment status

CISR49600 Action guide contents

When a Scheduled Review has taken place, and the result from the Tax Treatment Qualification Test (TTQT) is confirmed as a “Fail”, the subcontractor will be notified by the issue of form CIS308 that they will lose their gross payment status 90 days after the issue of the notice. A copy of this notice will also be sent to the subcontractor’s Customer Level Agent (See CISR19020 for more information about Customer Level Agents).

If no appeal has been made by the subcontractor before day 55 after the notification of the change of payment status, all contractors who have paid or verified the subcontractor within the last two years will be notified on form CIS316 that the subcontractor’s tax treatment is to be changed from “gross” to “net” from a date which will be 90 days after the issue of the CIS308.

See also the guidance at CISR49050 regarding Scheduled Review and appeals against withdrawal of gross payment status.

See also CISR43000for more detailed guidance on the changing of a subcontractor’s payment status from gross to net before the scheduled review date, and CISR48000 for the handling of an appeal by the subcontractor against the withdrawal of (or refusal to grant) gross payment status.