CISR44630 - Register and maintain subcontractor: turnover test: company

| CISR44000 | Information contents | |—————————————————————————————————–|———————-|

This action guide explains how you apply the turnover test to a company applicant.

  1. Has the applicant made an entry at item 15 (Subsidiary Companies) of form CIS305

If not, proceed to step 3.

If so

  • note the UTR of each shareholding company
  • open the CIS record of each shareholding company
  • establish whether or not it has gross payment status under CIS
  • proceed to step 2
  1. Is each shareholding company examined in Step 1 entitled to gross payment status under CIS?

If so, proceed to Step 5

If not, proceed to Step 3

  1. Check that the applicant has entered figures in fields (A), (B) and (C) in the ‘Part D Turnover Test’ section of form CIS305.

If not, proceed to step 4.

If so, proceed to step 5.

  1. If fields (A), (B) and (C) have not been completed, have fields (A) and (C) been completed showing the same figure with field (B) being left blank, showing a dash or other indication that a ‘Nil’ materials entry is intended?

If so, proceed to step 5.

If not, do not apply the test but proceed as follows

  • cut and paste copy of the letter A set out below into a letter template
  • edit the letter to suit the problem
  • take a copy of the application page showing the incomplete entry and write the applicant company’s UTR on it
  • send the letter and application page copy to the company requesting a complete set of figures
  1. Check that numbers are entered at item 22 of form CIS305 (Number of relevant persons) for the ‘Total number of company directors’ and (if the company is ‘close’) the ‘Number of shareholders’

If so, proceed to step 6.

If not,

  • print a copy of the letter A set out below
  • take a copy of the application page showing the incomplete entry and write the applicant company’s UTR on it
  • send the letter and application page copy to the company requesting entry of the correct figure at item 22.
  1. Open the CIS System page entitled ‘Turnover and Business Test Details’ and enter figures taken from the corresponding fields in the application form in the following window fields
  • Gross Amount of Payments
  • Cost of Materials (leave this blank if the application form shows a blank, a zero, a dash or the words ‘nil’ of ‘none’) [Check field validation]
  • Net Construction Turnover
  • No of Partners/Relevant Persons
  1. Select ‘Next’ to proceed to the business test.

Letter A for applicant - Applications returned for turnover test correction

DEAR

APPLICATION FOR CIS REGISTRATION

Your [company’s/firm’s*] application needs to be amended because

Turnover Test Figures*

You have not entered amounts for each item and it is unclear whether an entry forMaterials’ is required (see copy attached). Please now enter the missing details on theattached copy, and return this to me.

Partnerships/companies*

The section stating number of partners/relevant persons has not been fully completed (seecopy attached). Please now enter the missing details on the attached copy, and return thisto me.

Your application cannot proceed without the above information.

Your early reply is therefore essential.

Thank you

[*delete as necessary]