CISM Glossary
The following are important terms in the Construction Industry Scheme with short explanations. If you would like to recommend further terms for coverage in this glossary, please contact Phil Hunt on 0207 438 6925.
Alternative turnover threshold
The amount of construction turnover a partnership or company subcontractor needs to show net of relevant materials to pass the alternative turnover test.
Cardholder
One who holds a Registration Card or a Certificate on behalf of a subcontractor concern.
The CIS Centre
EDS-run centre for the CIS system and associated Registration Card and Certificate production.
Construction Gross Payment Vouchers (CIS23):
These are issued to the contractor for use where a Construction Tax Certificate or certifying document is presented. The contractor keeps one part and sends the other part to the Revenue.
Construction operations
Operations as defined at section 567 of ICTA 1988 and described in IR14/15 (CIS) Appendix B
Construction Tax Certificate (CIS5):
Successor to the 714(C) this permits the contractor to pay the company named on the certificate without deduction.
Contractor Any of the following:
* person carrying on a business including
construction operations
* person spending over a certain amount on
construction operations
* a local authority
* a development corporation or new town
commission
* the Commission for New Towns
* the Housing Corporation
* a housing association or housing trust
* Housing for Wales
* Scottish Homes
* Northern Ireland Housing Executive.
CTPF Corporation Tax Pay and File computer system
CTSA Corporation Tax Self Assessment
Exception report
A report of a system error or processing problem encountered at the CIS Centre or on the CIS system.
Electronic Data Interchange (EDI)
This describes the process by which contractors can submit CIS25 and CIS23 voucher information
through electronic communications. Similar to e-mail. This method of supplying voucher information is set up and run by the Electronic Business Unit. Information is available at CIS6013.
Firm This is used in the technical sense to mean
partnership.
Gross Payment Vouchers (CIS23 or CIS24)
These can be `Construction Gross Payment Vouchers’(CIS23) or `Subcontractors Gross Payment Vouchers’(CIS24) depending on whether the subcontractor holds a CIS6 or a CIS5 Certificate. You will find a description of their use under those names.
Individual turnover threshold
The amount of construction turnover an individual needs to show net of relevant materials in order to pass the standard turnover test.
Multiple turnover threshold
The individual turnover threshold multiplied by the number of partners in a partnership
or relevant persons in a company.
NINO National Insurance Number
Nominated partner
TMA70 s12AA(2) requires partnerships to nominate a partner to file a partnership return for the purposes of SA. This partner is known as the nominated partner. The term representative partner may also be used to describe the same person.
A full explanation of the responsibilities of the nominated partner can be found in the SAM under `Nominated Partner’.
Note that the CIS legislation does not use the term or make any requirements of the ‘nominated partner’. But in accordance with SA practice the CIS application form asks the SA nominated partner to complete the form.
Organisation unit
An organisation unit is an office or management unit within an office. It is used with reference to Roles and Access.
Payment status: This has three possible values as follows:
- Unregistered: a known subcontractor
who at present holds neither a Registration Card nor a Certificate
- Taxed Registered: a subcontractor who
holds a Registration Card
- Gross: a subcontractor who holds a
Certificate. Where a partnership has a mix of Certificate and Registration Card holders, this status will apply.
Processing Office
This is an SA term for the office `owning’ or responsible for a taxpayer’s affairs.
Registration Card
A card showing a subcontractor as registered with the Construction Industry Scheme and allowing the contractor to pay the subcontractor named under deduction.
Subcontractor
A person who is contracted by a contractor (above) to
* carry out construction operations (above)
or
* provide for the carrying out of
construction operations
or
* be responsible to the contractor for the
carrying out of those operations.
Subcontractors Gross Payment Vouchers (CIS24):
These are issued to the subcontractor for use in combination with a Subcontractors Tax Certificate. They are completed by the subcontractor who retains the middle copy and sends the other two parts to the contractor. The contractor completes his/her part, sends
the top copy to the Revenue and retains the other.
Subcontractors Tax Certificate (CIS6):
Successor to the 714 (I) and (P) this permits
a contractor to pay the subcontractor
represented by the cardholder without deduction. In this case the card is personalised and must be presented by the holder.
Tax Payment Voucher (CIS25):
These are issued to the contractor for use
where a Registration Card is presented. The contractor gives one part to the subcontractor, retains one part and sends the other part to the Revenue.
Update access This means you are able to view and enter or amend information on the CIS system.
User role A user role reflects a particular job or task with Roles and Access. It determines your access rights to a system.
Voucher Issue Profile Band
This is a band letter allocated to a subcontractor (for Gross Payment Vouchers) and a contractor (for Tax Payment Vouchers and Construction Gross Payment Vouchers) which determines the levels and timing of voucher issue.
