Construction Industry Scheme - CIS8300

Scheme compliance: Regulation 10 directions: introduction

REGULATION 10 DIRECTIONS: INTRODUCTION

This paragraph serves as an introductory overview of the module on Regulation 10 directions. For more detailed coverage use the above links to the information menu or action guide menu.

The module covers the processes involved in dealing with requests by contractors to be relieved of liability where they have failed to make deductions properly due from payments to subcontractors.

These requests are provided for under Regulation 10, S.I.1993, No.743. They can be allowed on either of two grounds.

1) Under Regulation 10(2) the Collector can direct that the contractor is relieved of liability where s/he is satisfied that the failure to make a deduction arose from an 'error made in good faith' or a `genuine belief' that the payment was not within the scope of the Scheme.

2) Under Regulation 10(3) the Inspector can direct that the contractor is relieved of liability where s/he is satisfied that the subcontractor was not liable to tax on the payment or tax and, in the case of an individual, Class 4 NIC has already been paid by the subcontractor.

Specific subjects covered by the module include

• dealing with requests for Regulation 10 directions

• dealing with appeals where requests are refused

• guidance about the effect of such requests on related Regulation 14(1) assessment proceedings

Note that this module fully covers the handling of Regulation 10(3) directions sought from the 'Inspector'. It also describes the action you should take if you receive a request for a Regulation 10(2) direction but are not authorised to act as a 'Collector'.

The detailed procedures for the handling of Regulation 10(2) directions and associated appeals are in the Collection PAYE Instructions at

PA6.300 onwards - Regulation 10(2) directions
PA6.500 onwards - Appeals under Regulation 10(4)

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