CISR43010 | Register and maintain subcontractor: gross payment or payment under deduction: introduction

This paragraph serves as an introductory overview of the examination of registration applications for net payment status and gross payment status.

This section covers the process from submission of the registration application, applying the tests for gross payment status and the outcome of the application, and the granting of gross or net payment status.

Subjects dealt with here are:

• The order of applying the tests (greater detail is covered in the separate sections for each of the tests

• Applications involving joint concerns

• Applications involving changes in the type of the concerns

See the information and action guide menus for detail on any of these topics.

All applicants are initially granted ‘Net’ payment status. Gross payment status is only confirmed after the successful outcome of the Turnover test, Business test and Compliance test.

Applications for net or gross payment status can be made

• online by completing and submitting a form via GOV.UK what you must do as a CIS subcontractor or

• by completing paper forms

HM Revenue & Customs have made a commitment to process all gross payment applications as soon as possible after receipt.

If gross payment status is granted to a subcontractor they will then be subject to an annual compliance test known as the Scheduled (or Ongoing) review to make sure that the subcontractor is continuing to meet all of their obligations under the Taxes Acts. Detailed guidance about the Scheduled review can be found at CISR49000.