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HMRC internal manual

Construction Industry Scheme Reform Manual

From
HM Revenue & Customs
Updated
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View Customer and Record Contact: Subcontractors TTQT (Compliance test) Results

General

Having followed the steps listed at CISR90020 to gain entry to view a subcontractor record, and then selected View Customer from the CIS Main Menu, the next window visible will be the Registration Details window. From this window you should select the [TTQT Results] tab at the top of the window.

TTQT (Compliance Test)

TTQT is the Tax Treatment Qualifying Test, part of the Compliance Test. It is an automated compliance test for subcontractors to establish whether they are eligible for gross tax treatment. The requirements of the compliance test are that the subcontractor must have complied with all obligations arising under ICTA88 and TMA70 in the qualifying period and HMRC must have reason to expect they will continue to comply with these obligations. TTQT automatically checks compliance with certain obligations from other HMRC data sources. For further information see CISR46000 Compliance Test.

TTQT window

This window is divided into two panels:

  • TTQT Result Summary
  • TTQT Test Participants

TTQT Result Summary

This top panel will display in list form the results of any Tax Treatment Qualifying Tests undertaken. The list will be populated with:

  • The date the test was performed in the Data Warehouse
  • The qualifying period start and end dates
  • The Test Type - This will indicate the reasons for requesting TTQT which at present are:

    • Registration - carried out at registration if an application for gross tax treatment has been requested
    • Request change of tax treatment - when the request for gross tax treatment is made by the subcontractor
  • Result - This will be shown as PASS, FAIL or INCOMPLETE.
  • Result Status - (overall test result). A TTQT has a result of either Confirmed or Unconfirmed.

    • CONFIRMED - Where the TTQT receives a PASS or FAIL result from the Data Warehouse, the result status given will be CONFIRMED. (The exception to this is where FAIL results are being manually checked). A TTQT with a status of CONFIRMED cannot be edited.
    • UNCONFIRMED - This status will be set if the TTQT result is INCOMPLETE or ‘FAIL’ (In these instances manual checking will be required).

For information on when it is necessary and how to change the result status, to enable the user to ‘complete’ the TTQT see CISR43000 onwards.

If you now wish to view details relating to the participants of a TTQT listed in this panel you should select the appropriate participant’s TTQT Result.

TTQT Test Participants

This panel will initially be blank. However once an entry has been selected in the panel above, it will populate this panel with the following details:

  • Participant’s Name,
  • Role - for example, registered sole-trader, registering partner
  • UTR,
  • Taxpayer type - for example, sole-trader, partnership, relevant person.
  • Participant result. A participant’s TTQT result will be determined by the ‘Result Reason types as follows:

    • If any result reasons given are ‘Incomplete’, the participant result will be ‘Incomplete’.
    • If there are no result reasons given the participant result will also be ‘Incomplete’.
    • If there are no result reasons ‘Incomplete’ and there is at least one result type of fail the participant result will be ‘Fail’.

Otherwise, the participant result is ‘Pass’. If you then wish to view further details relating to that selection, select the appropriate line entry which will forward you to the Participant Summary window.

Participant Summary window

This window is divided into three panels

  • Participant Summary
  • Result Reasons
  • Result Reason Details

Participant Summary

This panel is a repetition of the details contained within the TTQT Participants panel

Result Reasons

This panel will be populated with any Result reasons that are Incomplete - taken from the entries shown in the previous window at ‘TTQT Test Participants result’.

Each participant in the TTQT will have one or more ‘result reasons’ and these are used to calculate the participant result.

‘Result reasons’ are classified as Pass, Fail or Incomplete Types. There are numerous pass, fail and incomplete reasons for individuals, companies and partnerships held on the system.

Result reasons have a status of ‘Active’ or ‘Inactive’. All ‘Active’ reasons contribute to the TTQT result for the participant.

If a Fail Result reasons is allocated to a participant that fail reason must have accompanying detail. The accompanying detail is used to populate the form CIS308 (the notification to the subcontractor) Result Reasons Details

In order to see further details of any of the Result Reasons displayed you should select a line entry from the Result Reasons panel. This panel will now show details relevant to that Result Reason selected. The headings shown in this panel will differ according to the particular Result Reason being displayed.

Note that where you see failure reasons as follows:

1(+) SA Tax debts unpaid - This means there are one (or more) SA Tax debts unpaid

4(+) Contractor returns less than 28 days late - This means that there are four (or more) contractor received late by less than 28 days.