SolvedCISR42620 | Register and maintain subcontractor: the registration process: register sole trader for payment under deduction
From HM Revenue & Customs · Construction Industry Scheme Reform Manual
| CISR42000 | Information contents | |—————————————————————————————————–|———————-|
This action guide explains how to
process a registration application made by a sole trader on form CIS301 for CIS net registration
carry out the net registration stages for a sole trader seeking gross registration on form CIS302
Authenticate the application using the Action Guide at CISR22600.
This takes you to the ‘CIS Main Menu’ window
In the ‘CIS Main Menu’ window, ‘Subcontractor registrations’ panel
Check whether the applicant
is already registered as a sole trader, that is, there is a ‘Regd’ entry under ‘Status’ on the ‘As subcontractor’ line
or
has a registration application pending, that is, there is a no entry under ‘Status’ under the heading ‘Subcontractor Registrations’ against this particular subcontractor’s UTR..
If so, write to the applicant saying that they are already registered for payment under deduction or an application for registration is already being considered.
If not, go to Step 3
Check whether the form CIS301 or form CIS302 is complete in all essential respects, that is
it is legible and has been signed and dated
the following fields have been completed
First name and surname
Home address
UTR
NINO
Date construction work started (or is expected to start)
type of construction work done
If the form is complete in all respects, go to Step 4
If the form is incomplete in some respects but includes a NINO entry, mark the entries that are deficient with an ‘X’ in pencil and return the form to the applicant for completion.
If the form is incomplete and the NINO is among the omitted entries, mark the deficient entries with an ‘X’ in pencil and write to the applicant
returning the form
asking them to complete the omitted entries, and arrange for a mobile adviser to attend for an ID check. Ask them to bring with them evidence of identity (See CISR42150).
Once the Identity check has been completed pass the now complete form to the CIS Team at the National Insurance Contributions Office (NICO) who will then process the registration application in the normal manner.
Where the form is being returned to the applicant by the CIS Team at NICO the registration application will be returned with a covering template letter (CIS366) which highlights the missing information required.
Resume registration when/if the amended form is returned.
In the ‘CIS Main Menu’ window, ‘Subcontractor registrations’ panel
Select the ‘As Sole trader’ checkbox.
Select ‘Register subcontractor’ in the ‘Menu’ panel
At this point CIS will attempt to validate the NINO for the subcontractor using the Citizens Identification Framework (CID). If the NINO is validated you will be taken straight to the ‘Sole trader Details’ window. If the NINO cannot be validated the “ID Check” window will appear, this window will allow you to enter the supporting documents supplied by the subcontractor to validate their identity.
If you consider that an “ID check” is not required you should de-select the tickbox at the top of the window and enter a reason for this in the “Reason not Required” field. (See CISR42150 for more information on identity checks). When checking the tickbox “Other” on this window the “free format” field below the box must be completed showing the other type of identification the subcontractor has produced. Once all of the appropriate entries have been made on this window select [OK] and this will then take you to the “Sole Trader Details” window.
At any time during the process a [Cancel] button is available to you in the bottom right hand corner of the window you are in. Selecting this will completely cancel the action you have taken so far and will return you to the CIS Main menu, the subcontractor should be advised that their registration for payment under deduction has not been effective, and that they will be subject to deduction at the higher rate.
This takes you to the ‘Sole trader Details’ window.
In the ‘Sole trader Details’ window you should always check that you have the correct subcontractor:
Check that the address entered at Box 4 or Box 14 on form CIS301, or Box 4 or Box 13 of form CIS302 matches the entry in the ‘Address’ field.
If so
Select the [Next] button (this takes you to the ‘Trading Details’ window)
Go to Step 7)
If not
select the [Change Address] button (this opens the ‘Find Address’ window)
Go to Step 6)
In the ‘Find Address’ window
Enter the building name or street number in the ‘House ID’ field
Enter the postcode in the ‘Postcode’ field
Select [Find] button (this opens the ‘Find Address (2)’ window)
Check whether the address given appears in the ‘Details’ panel
If so
Select the relevant address line entry.
Select the [Confirm Address] button (this takes you to the ‘Sole-trader details’ window)
Select the [Next] button (this takes you to the ‘Trading Details’ window)
If not
Enter the address given in the ‘Address/Postcode’ fields
Select the [No Match] button (this takes you to the ‘Sole-trader details’ window)
Select the [Next] button
This takes you to the ‘Trading Details’ window.
In the ‘Trading details’ window
Enter the date appearing in Box 11 of form CIS301 or Box 10 of form CIS302 in the ‘Date started …’ fields
Select the drop-down button in the ‘Type of work in the construction industry’ field. If the subcontractor does not know the type of construction work they have been contracted for, after checking that the contract is not one of employment, you should then select “General Builder” from the list supplied.
Select the work-type from the list that most closely matches the entry made in Box 12 of the form CIS301 or Box 11 of form CIS302, or if there is no obvious match, select ‘Other’
If you have selected ‘Other’ in the list, enter the description taken from Box 12 of form CIS301 or Box 11 of form CIS302 in the ‘Other’ field
If there is an entry in Box 13 of the form CIS301 or Box 12 of form CIS302, enter the name in the ‘Trading name’ field
If there is an entry at Box 14 of the form CIS301 or Box 13 of form CIS302, check that it matches the entry in the ‘Trading Address’ fields.
If so, go to Step 8)
If not
Select the [Change Address] button and the ‘Find Address’ window opens
In the lower panel, select the entry that matches the Trading Address given by the applicant
Select the [Confirm Address] button or, if there is no match
Select the [No Match] button
This returns you to the ‘Trading Details’ window
In the ‘Trading details’ window
Check whether Box 15 of the form CIS301 or Box 14 of form CIS302 quotes a VAT number and if so, enter it in the ‘VAT Number’ field
Check that ‘Yes’ has been selected at box at Box 17 of the CIS301 or Box 16 of form CIS302 and if so, select the checkbox alongside the question ‘Have you been paid by a contractor since 6 April 2007?’ If ‘No’ is shown at either Box17 or Box16 above no entry of this fact will be required, and you may proceed with the application for ‘payment under deduction’ or ‘gross payment’ as appropriate.
The agent for whom an authorisation form is already held should automatically be shown in the Agents details box. If the applicant has confirmed at either Box 16 of the form CIS301 or Box 15 of form CIS302 that they wish to use the existing agent for the Construction Industry Scheme you should select the appropriate box. . If ‘yes’ is already selected against the agent you need take no further action.
If the application is on form CIS301
Select the [Apply for Net] button (this takes you to the ‘Declaration’ window)
Go to Step 9) of this Action Guide
If the application is on form CIS302
Select the [Apply for Gross] button
Go to Step 2 of the Action Guide at CISR42630 - ‘Register Sole Trader for Gross Payment (Paper)’
In the ‘Declaration’ window
Select the checkbox in the top right-hand corner of the panel.
Select the [OK] button
You should check again that the declaration has been signed before selecting the confirmation box at the top right of the window. If the application is being made by paper, the application form must be signed by the subcontractor, it cannot be signed by a Tax adviser on the subcontractor’s behalf.
Note - The wording on the ‘Declaration’ window differs between applications for net payment status and applications for gross payment status. There will be no confirmation message to say that registration is complete.
In the unlikely event that the subcontractor refuses to make the declaration required that the information given is correct, you will need to select [Cancel] on this window.
If, at Step 8, you selected the checkbox ‘Have you been paid by a contractor since 6 April 2007?’, you will see a warning ‘Please remember to search for unmatched verifications’.
Select the [OK] button, this will take you back to the CIS Main Menu.
Carry out ‘Update Unmatched Verifications’ procedure
Put the form CIS301 away in the folder CIS31, see CISR18020 regarding maintaining internal records.
If the contact requires you to carry out further Registrations, then select the [New Customer] button, if however they do not then if you select the [End Contact] button this will take you back to the Identify Customer window. When selecting the [New Customer] button a message is displayed stating “Click on the [New Customer] button again if a new customer is to be retrieved within the same contact”, this message is merely to confirm that you wish to view another customers CIS record within the same contact. If you do not then you should select the [End Contact] button instead.