CISR16220 | The Scheme: primary legislation: section 77

This section deals with the commencement of the new scheme and certain transitionalarrangements.

• That the new scheme has effect in relation to payments made on or after the appointed day: FA04/S77 (1)

• Those with gross payment certificates in force immediately before the appointed day will be automatically registered in the new scheme with gross payment status: FA04/S77 (2)

• Those with registration cards in force immediately before the appointed day will be automatically registered in the new scheme with net payment status: FA04/S77 (3)

• After the appointed day, a contractor who has paid a subcontractor in the current or previous two tax years can continue to pay them using the same payment status, unless the contractor has reason to believe that it has changed: FA04/S77 (4)

• Where a contractor has made payments to a subcontractor in the current or two previous tax years, there is no requirement to verify that subcontractor: FA04/S77 (5)

• Where verification is not a requirement, the contractor can continue to pay the subcontractor in accordance with their current payment status, unless otherwise notified: FA04/S77 (6)

• The ‘appointed day’ will be set by Treasury Order: FA04/S77 (7)

• Further supplemental and transitional provisions may be made by Treasury Order: FA04/S77 (8)