CISR17300 - The Scheme: secondary legislation: regulation 29

This regulation deals with the evidence required to satisfy the turnover test. To be read in conjunction with FA04/S66 and FA04/SCH11.

For the qualifying period, applicants must produce –

• evidence of turnover of the business as described in FA04/SCH11/PARA3(1), 7(1) and 11(1): SI2005/2045 reg 29(1)(a).
• evidence of relevant payments, including bank statements and paid cheques: SI2005/2045 reg 29(1)(b).
• evidence that aggregate amounts of relevant payments at least equalled the turnover threshold: SI2005/2045 reg 29(1)(c)(i).
• for the purposes of FA04/S66, evidence that the aggregate amount of relevant payments at least equalled the turnover threshold or the average amount of relevant payments received during the qualifying period and the previous two years at least equalled the turnover threshold: SI2005/2045 reg 29(1)(c)(ii).
• documentary evidence that the business carried out construction operations: SI2005/2045 reg 29(1)(d).

For new businesses conducted by a partnership or company and where there is no evidence to support either turnover or the carrying on of construction operations, the following will be required to cover the qualifying period:

• evidence of relevant payments, including bank statements and paid cheques: SI2005/2045 reg 29(2)(a).
• for partnerships, evidence of the turnover of the partners: SI2005/2045 reg 29(2)(b).
• for companies, evidence of turnover of relevant persons: SI2005/2045 reg 29(2)(c).
• evidence of construction contracts entered into by the partnership or company, to include payment schedules with an aggregate value exceeding £200,000 and evidence that at least £30,000 of that amount has been received: SI2005/2045 reg 29(2)(d).
• where the business has been acquired from another person, the evidence specified at (3): SI2005/2045 reg 29(2)(e).

Subject to para (4), the evidence required in the event of a transferred business is

• the transferor’s relevant turnover during the qualifying period: SI2005/2045 reg 29(3)(a).
• evidence that the transferor received an aggregate amount during the qualifying period at least equalling the turnover threshold: SI2005/2045 reg 29(3)(b)(i).
• for the purposes of FA04/S66, evidence that the aggregate amount of payments received by the transferor during the qualifying period at least equalled the turnover threshold or the average amount of payments received during the qualifying period and the previous two years at least equalled the turnover threshold: SI2005/2045 reg 29(3)(b)(ii).
• evidence, by way of invoices, to show the transferor carried out construction operations: SI2005/2045 reg 29(3)(c).
• evidence that the transferor would have satisfied the compliance test set out FA04/SCH11/PARA4, 8 or 12 at the date of transfer: SI2005/2045 reg 29(3)(d).

The evidence required for para (2) can only be provided in respect of one application for gross payment status: SI2005/2045 reg 29(5).

The definition of 'relevant payment' and 'relevant turnover' is set out at SI2005/2045 reg 29(5).

ENABLING PROVISION – FA04/SCH11/PARA3(10), 7(10) & 11(1)