CISR51040 - Verify subcontractor: overview: verify subcontractor: company
| CISR51600 | Action guide contents |
Before making a first payment to a subcontractor the contractor or the contractors’ appropriate representative acting on their behalf must contact HMRC to confirm that the subcontractor is known to HMRC and registered with CIS and to obtain details of the subcontractor’s payment status. This process is known as 'Verification'.
The contractor will need to sign in to use this service. If they do not already have sign in details, they will be able to create them.
Identifying the subcontractor
It is important that HMRC can establish the identity of subcontractors working within CIS and for this reason the contractor must provide specific information about the subcontractor(s) that they wish to pay under the Scheme. Namely,
- COTAX Unique Taxpayer Reference (UTR)
- Company Registration Number (CRN)
- Trading name known to HMRC
The CIS system will check to see if the system holds a CIS record for the subcontractor.
Where you do have such a record we will confirm to the contractor that the subcontractor is registered for CIS, and tell the contractor to either make payments
- Gross (without any deduction) or
- Net of a standard rate of deduction.
Where you do not have a record or cannot find one for the subcontractor because of incorrect or incomplete information you should tell the contractor that the subcontractor does not appear to have registered for CIS. The contractor should be advised to make a deduction from the payment at the higher rate until the subcontractor can be verified.