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HMRC internal manual

Construction Industry Scheme Reform Manual

Register and maintain subcontractor: scheduled review: Scheduled review and Joint Ventures

CISR49600 Action guide contents

Joint Ventures are tested in the same way at Scheduled Review as other types of subcontractor depending upon the way that the joint venture is set up. A Joint Venture that is set up as a partnership and therefore has a record open on Self-Assessment (SA) will not only be tested itself in respect of its own compliance obligations, but the Tax Treatment Qualification Test (TTQT) will also test the partners in the Joint Venture in respect of their compliance obligations, and those partners will therefore be participants in the TTQT.

However, if a Joint Venture is set up as a limited company and is therefore set up on COTAX, then the Scheduled Review will not test the compliance of the individual companies that make up the limited company Joint Venture, and TTQT will only look at the compliance obligations of the limited company Joint Venture itself.

In deciding whether the Joint Venture can retain gross payment status at Scheduled Review, provided that you are satisfied that the TTQT test participants in the Joint Venture have met their compliance obligations or that they had a ‘reasonable excuse’ (CISR81020) for any failures identified then the ‘Incomplete’ reason ‘Unincorporated body is present’ may be set to a ‘Pass’ using the function ‘Manage TTQT’ as described in CISR43700.

However, note that before confirming a scheduled review as a ‘fail’ you will need to carry out the actions at CISR49030 and ask if the Joint Venture had a ‘reasonable excuse’ for the failures identified.