CISR12190 - The Scheme: contractors: multiple sites / schemes

Some contractors administer operations from several different bases. A single contractor scheme can be difficult for these contractors to operate. It can be difficult for the business’s head office to organise the verification process and monthly returns across the various bases.

SI2005/2045 reg 3, allows a contractor to elect to operate separate contractor schemes for each distinct part of the business. The election must be made to HMRC in writing and must include

• confirmation of the first tax period for which the election is to have effect.
• the information necessary to identify each group of subcontractors the contractor wishes to deal with under a separate contractor scheme. For instance, the contractor might define such a group in terms of ‘All subcontractors paid by my Bristol regional office’ and likewise for each of the remaining units.
• a declaration that the contractor makes payments subject to CIS only to the subcontractor groups identified in the election. This is so that the groups specified cover the contractor’s whole subcontractor workforce and none are left out of account.

Regulation 3 elections are dealt with by the centralised employers group (NICEO). Guidance about setting up an additional scheme is set out in CISR30000 onwards.

Revoking Regulation 3 elections

Once made, an election remains in force until the contractor revokes it. A revocation notice must be provided by the contractor before the beginning of the tax month for which the election is to be revoked.

However, a revocation does not prevent the contractor from making a new election for that or a later tax month.