Construction Industry Scheme - CIS2700

Registration Cards: cessations: introduction

CESSATIONS: INTRODUCTION

This paragraph serves as an introductory overview of the subject; for deeper coverage use the above links to information or action guides.

Registration cards can be of three types

• for sole traders

• for members of partnerships (Cardholders for a partnership)

• for directors of companies or company secretaries.

The treatment of sole traders is different from that for partners and directors holding a Registration Card on behalf of a concern (a partnership or a company).

The accompanying information and action guides supply detail on how to deal with changes required to the CIS record following notification of cessation. Use the links above to detailed action guides and information panels.

SOLE TRADERS

Registration Cards for sole traders will not be cancelled/withdrawn except in cases of misuse. This is because the absence of a current valid Registration Card will prevent the subcontractor from receiving payment for work done on a self employed basis within the construction industry.

With the exception of temporary cards issued when no validated NINO is known to CIS, Registration Cards will not carry an expiry date and will remain valid for as long as the subcontractor is working within the construction industry.

The CI signal set on SA should only be removed when you are notified that a permanent cessation, in the form of retirement or death of the subcontractor, has taken place and no further business is to be undertaken within the construction industry.

In those circumstances it will be necessary to enter a 'ceased date' on the CIS record which will change the status of the Registration Card to 'ceased'. This will prevent the issue of any replacement cards and warnings are given if vouchers are received for a tax month after that month in which cessation date falls.

Whilst payments may continue to be received by the personal representatives or executors of a deceased subcontractor these will fall outside the scope of the Scheme and can be paid gross by the contractor. Unless otherwise advised the date of death should be assumed to be the 'ceased date' to be entered on the 'Taxpayer Record'.

Note: whilst any 'Deceased' signal and 'Date of Death' will flow over from the SA record these will not have the automatic effect of cancelling the Registration Card. The entry of 'Deceased' signal or 'Date of Death' will however prevent the automatic replenishment of vouchers to the card user.

PARTNERS & DIRECTORS

Partners and directors of companies may hold a personalised Registration Card as cardholders in the name of each partnership or company which they represent.

In the event of a partner or director ceasing to act for a concern you will need to enter a date of cessation on the cardholder's record. This will have the effect of automatically ceasing the Registration Card and amending the cardholder's status to 'Unregistered'.

You should also recover the Registration Card held by the partner or director ceasing to represent the partnership or company.

Registration Cards held by a cardholder acting for a concern can be invalidated by amending the status of the card. However, you can only do this if more than one valid Registration Card exists for the concern.

If you attempt to cancel the last Registration Card you will instead be invited to cease the concern itself which will in turn automatically cancel the Registration Card. The reason behind this being that to remain within CIS a concern must have at least one cardholder with a valid Registration Card or Certificate.

Forms
glossary
Where am I?
Quick links index- cross reference on CIS0100