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HMRC internal manual

Construction Industry Scheme Reform Manual

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HM Revenue & Customs
Updated
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Compliance: Regulation 9(5) directions: Subcontractor's Processing Office

CISR83000 Information contents
   

This action guide explains the steps you should take on receipt of an enquiry from a contractor’s Processing Office following a contractor’s request for a Regulation 9(5) direction over a payment involving your subcontractor.

Action required by the contractor’s Processing Office is covered at CISR83620.

  1. Check the return or accounts to establish whether the payment in question has been included.
* Where it is not possible to establish from the accounts or return held that payments have been accounted for, there are certain circumstances where you can still confirm that ‘Condition B’ at Regulation 9(4) is likely to have been met. This is covered at [CISR83050](https://www.gov.uk/hmrc-internal-manuals/construction-industry-scheme-reform/cisr83050).

If it is not included

* send a report to the contractor's Processing Office explaining that the payment concerned is not recorded in the return or accounts for the subcontractor and that you cannot satisfy yourself that ‘Condition B’ at Regulation 9(4) has been met
* do not proceed to step 2.

If it is included go on to step 2.

  1. Establish whether the subcontractor is liable to tax for that period.

If there is no liability

* send a report to the contractor's Processing Office explaining that the payment is recorded in the return or accounts and that the subcontractor is not liable to tax for that period so ‘Condition B’ at Regulation 9(4) is met
* do not proceed to step 3.

If there is liability go to step 3.

  1. Establish whether the subcontractor has paid any tax chargeable.

If the tax has been paid

* send a report to the contractor's Processing Office explaining that the payment is recorded in the return or accounts and that any tax chargeable for that return has been paid so that ‘Condition B’ at Regulation 9(4) is met
* do not proceed to step 4.

If tax has not been paid go to step 4.

  1. Send a report to the contractor’s Processing Office explaining
* that the payment is recorded in the subcontractor's return or accounts but the related tax has not been paid
* and that ‘Condition B’ at Regulation 9(4) is therefore not met.