CISR48030 - Register and maintain subcontractor: Appeals against refusal or cancellation of Gross Payment Status: business and turnover test refusals

| CISR48600 | Action guide contents | |—————————————————————————————————–|———————–|

The applicant will have received details of the reasons why gross payment status has not been granted on form CIS308. The turnover test and business tests are run for each gross payment application irrespective of whether the turnover test is passed or failed. Form CIS308 will detail all the reasons for either test failing.

Where an application has failed because it has not met the requirements for the turnover test the applicant may respond with queries as to how the test has been carried out. Any questions as to the operation of the turnover test rules should be handled by a Higher or Senior officer.

It is important to explain the following

  • how the ‘Net Construction Turnover’ has been calculated
  • how the required turnover has been arrived at.

If the applicant wants to reapply or wants to appeal, then the officer should give advice on how to proceed. Where the applicant does not have sufficient turnover to pass the turnover test, and no appeal is submitted against that decision, the applicant is not restricted from applying again. Likewise in the same way when an applicant has failed to pass the compliance test, they can also apply at a later date.

The main difference in the handling of appeals based on refusals resulting from the turnover test and/or business test is that these applications have not been submitted to the compliance test. Where a case cannot be resolved without a tribunal Hearing or it turns out that the turnover test should have been passed, the application must be subjected to the compliance test. General guidance about the conduct of appeals hearings is available in the Appeals, Reviews and Tribunals Guidance (ARTG8200).

Note that once an appeal is received against the failure of either the business or turnover test, then you must also request an ‘Information only’ TTQT (see CISR43160). This is so that you can see whether the applicant also passes the compliance test. Any failures of the compliance test identified can then be brought to the applicant’s notice, and may inform the applicant as to whether they wish to continue with their appeal. If they do then appeal you must take into account the compliance test, gross payment status cannot be granted unless all the tests have been properly considered.