CISR18640 - The Scheme: miscellaneous: voluntary arrangements
| CISR18000 | Information contents | |—————————————————————————————————–|———————-|
Voluntary Arrangements
This action guide explains the steps you should take when you are notified that a taxpayer operating as a subcontractor and/or contractor within the Construction Industry Scheme has entered into a voluntary arrangement. It is divided into two as follows
- for individuals follow steps at A below
- for companies follow steps at B below
A - Individuals in voluntary arrangements
- Write to the supervisor asking whether trading has ceased
- Keep a copy of the letter in the CIS31 folder and put the file on BF for a response.
- If trading has ceased, proceed as follows
- if you have access to the SA system, enter details of the insolvency reference and the date on the taxpayer’s SA record using the function Amend Taxpayer Signals following the guidance in the Self-Assessment Manual at SAM106000.
- using the function ‘Maintain Sources’ (again within SA) note that the trade has ceased and the date of cessation on the taxpayers record. (For further guidance refer to the Self-Assessment Manual at SAM106000).
- if you do not have access to the SA system you should send an email to the subcontractors processing office advising them of details of the bankruptcy and the date trading ceased.
- If trading continues, proceed as follows
- delete the NINO on the taxpayer’s SA record and set up a new SA record and file following the guidance in the Self-Assessment Manual at SAM106120.
- cross-reference the old and new taxpayer files with notes on their covers
Gross payment applications from participants in voluntary arrangements present special problems. If you receive an application from a participant you should refer to the guidance at CISR46130.
B - Companies in voluntary arrangements
- Write to the supervisor asking
- whether trading has ceased and if so, to state the date of cessation.
- If the company has not ceased in the construction industry, to confirm that it’s day-to-day management remains in the hands of the directors.
- Keep a copy of the letter in the CIS32 folder and put the file on BF for a response.
- If the reply informs you that trading has ceased, notify the relevant COTAX office in writing of the liquidation details together with the cessation date.
- If the reply informs you that trading continues and the day-to-day management of the company remains in the hands of the directors, take no further action.
Gross payment applications from participants in voluntary arrangements present special problems. If you receive an application from a participant you should refer to the guidance at CISR46130.