CISR44020 | Register and maintain subcontractor: turnover test: applying the turnover test

Applying the turnover test involves comparing the applicant subcontractor's net construction turnover in the qualifying period with a threshold figure set in law. The qualifying period is the 12 months preceding the date of application, and the monetary threshold varies according to

• the class of the business (whether a sole trader, partnership or company),

• the number of its participants,

• whether construction work (or supplying labour for such) is its main trading activity

The turnover test breaks down into 7 tests referred to in this guidance as

• the Standard test (CISR44160)

• the Alternative test (CISR44170)

• the Subsidiary test (CISR44180)

• the Inherited receipts test (CISR44190)

• the Transferred Receipts test (CISR44200)

• the Prospective Receipts test (CISR44210)

• the Incidental Receipts test (CISR44220)

These tests are described in more detail in the topics devoted to them.

Evidence checks

Initially, turnover figures taken from an application form (or captured on line) will be accepted for carrying out the turnover test. Where the result is a pass (and the applicant passes the other statutory tests) gross payment status will be granted provisionally. At a later stage a proportion of applicants assigned gross payment status will be required to supply detailed evidence to substantiate the information entered on the application form or captured in a telephone application. See CISR44030and CISR44040 for more detail on this.