This regulation deals with the inspection of records.
When asked, a contractor must deliver for HMRC inspection
either all of their records or those specifically requested by
HMRC. This to be done at the prescribed place and within a
reasonable timescale: SI2005/2045 reg 51(1).
A definition of 'contractor records' is at SI2005/2045 reg
51(2)(a) and (b).
When asked, a person who is or who has been a subcontractor
within the preceding 3 years, must deliver for HMRC inspection
either all of their records or those specifically requested by
HMRC. This to be done at the prescribed place and within a
reasonable timescale: SI2005/2045 reg 51(3).
A definition of 'subcontractor records' is at SI2005/2045
reg 51(4)(a) and (b).
A definition of 'prescribed place' is at SI2005/2045 reg
51(5)(a) and (b).
HMRC may take copies or extracts of any document produced
for inspection in accordance with (1) or (3) or can, if necessary,
retain an original document for a reasonable amount of time:
SI2005/2045 reg 51(6)(a) and (b).
If HMRC does remove an original document in accordance with
para (6)(b) they must provide a receipt. If the person providing
the document needs it for the conduct of their business, they can
ask HMRC to provide a copy of the document within 7 days of a
request being made: SI2005/2045 reg 51(7)(a) and (b).
If another has the right to hold the document in place of
the payment of a debt, this right is not affected by the removal
and retention of the document by HMRC: SI2005/2045 reg 51(8).
If records are electronically held by the person required to
produce them, HMRC must be given all necessary facilities to allow
them to access the information: SI2005/2045 reg 51(9).
Contractors and subcontractors must retain all records,
which are not required to be sent to HMRC under these regulations,
for a period of 3 years from the end of the tax year to which they
relate: SI2005/2045 reg 51(10).
ENABLING PROVISION – FA04/S70 (3) & 73(4)
