CISR42200 | Register and maintain subcontractor: Registration for CIS - problem cases

You will occasionally come across cases where it is not possible to register the subcontractor for CIS even though the parent system (such as Self-Assessment) shows a record that is open already in existence. These cases can fall into the following categories.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Bankruptcy cases

Where a sole trader has been made bankrupt and they are continuing to trade, a new Self Assessment (SA) record will be required (See SAM106000). Occasionally, the new Unique Taxpayer Reference (UTR) for the subcontractor will not be recognised on the Citizens Identification Framework (CID) and this will prevent registration for CIS. This will mean that if the contractor tries to verify the subcontractor using the new UTR they will be asked to apply the ‘unmatched’ rate of deduction of 30%.

Dormant cases

Where the SA Record is ‘Dormant’ perhaps because the subcontractor has recently recommenced self-employment after a period working on PAYE, or following a period of unemployment.

Written requests to register for CIS

Written registration requets are not accepted. Application forms are available for completion and submission online via GOV.UK. This is the quickest and most secure way to deal with applications. The type of form depends on the type of applicant. Application forms are also available to print and post.

See What you must do as a Construction Industry Scheme (CIS) subcontractor: Overview - GOV.UK (www.gov.uk)

Other Registration problems

If you come across any other Registration problems where it is not possible to register the subcontractor for CIS, even though the parent record is already in existence and it is open, you should take the action as described under ‘Bankruptcy cases’.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Note: under no circumstances should the customer have deductions made at 30% by their contractor(s) for any length of time where deductions at either 20% or gross payment status are applicable for the subcontractor.