This regulation sets out the arrangements under which a
contractor can elect to operate separate ITSC schemes for each part
of the business. This regulation corresponds with facilities
provided under SI1993/744 reg 4.
A contractor can elect to be treated as a different
contractor in relation to different groups of subcontractors:
SI2005/2045 reg 3(1).
Where a contractor makes such an election, the regulations
will have the effect of treating the contractor as a different
contractor for each group of subcontractors and each group as
constituting all the subcontractors paid by the contractor in
respect of construction operations: SI2005/2045 reg 3(2).
While a multiple contractor election continues, any new
subcontractor must be allocated to one of the subcontractor groups:
SI2005/2045 reg 3(3).
HMRC must be notified of a multiple contractor election
before the beginning of the tax year in which it is to take effect,
subject to (6). The contractor must also provide HMRC with
information identifying the different groups of subcontractors and
confirming that no payments for construction operations are made
outside of these groups: SI2005/2045 reg 3(4) and (5).
Where a contractor acquires another construction business
during the course of a tax year they must notify HMRC within 90
days of the acquisition that they wish to make a multiple
contractor election in relation to the acquired subcontractors, or
that they wish to add the acquired subcontractors to an existing
multiple contractor election: SI2005/2045 reg 3(6).
Definitions of 'business' and 'acquired subcontractor' are
given at SI2005/2045 reg 3(7).
A multiple contractor election continues to have effect until
the contractor notifies HMRC that it is to be revoked: SI2005/2045
reg 3(8).
A revocation notice must be provided by the contractor before
the beginning of the tax year in which it is to take effect.
Revoking an election does not mean that the contractor cannot make
another election before the beginning of the next or later tax
year: SI2005/2045 reg 3(9).
An election that has not yet come into effect can be revoked
at any time before the beginning of the tax year in which it was to
take effect: SI2005/2045 reg 3(10).
ENABLING PROVISION – FA04/S71 (2)
