CISR46060 | Register and maintain subcontractor: compliance test: main reasons for failure

The following is a guide to the main reasons for refusing an application for gross payment status.

Non-payment of tax

Any of the following means a failed compliance test

• formal proceedings have been taken to recover unpaid liabilities falling due in the qualifying period, including cases where the tax is eventually written off

• an investigation has revealed general tax irregularities in respect of obligations imposed in the qualifying period and outstanding liability or payments under an instalment offer have lapsed

• a PAYE/VAT/CIS remittance is outstanding of £100 or more and the due date was more than 14 days ago

• outstanding National Insurance contributions

Top of page

Late payments

Any of the following means a failed compliance test

• any PAYE/VAT/CIS remittance of £100 or more within the preceding 12 months was paid more than 14 days after the due date, or more than 3 remittances of £100 or more are paid late but within 14 days of the due date in the preceeding 12 months

• any late National Insurance contributions

Top of page

Returns

Any of the following means a failed compliance test

• Four or more late submissions of the contractor’s monthly return CIS300, or VAT return within the preceding 12 months where the returns were less than 28 days late

• Any submission of the contractor’s monthly return CIS300, VAT or SA return within the preceding 12 months made later than 28 days after the due date

• A contractor’s monthly return already due but remaining outstanding at the date of application

• Any SA return due in the qualifying period but outstanding at the date of application

• Any Corporation Tax return (CT600) due in the qualifying period but outstanding at the date of application

• Any VAT return due in the qualifying period but outstanding at the date of application