CISR43010 - Register and maintain subcontractor: gross payment or payment under deduction: introduction

This paragraph serves as an introductory overview of the examination of registration applications for net payment status and gross payment status.

This section on the examination of registration applications covers the process from submission of the registration application, applying the tests for gross payment status and the outcome of the application, the granting of gross payment status or net payment status.

Subjects dealt with here are:

• The order of applying the tests (greater detail is covered in the separate sections for each of the tests
• Applications involving joint concerns
• Applications involving changes in the type of the concerns

See the information and action guide menus for detail on any of these topics.

All applicants are initially granted ‘Net’ payment status. Gross payment status is only confirmed after the successful outcome of the Turnover test, Business test and Compliance test.

Application for gross payment status can be made

• in writing by completing form CIS302, CIS304 or CIS305 as appropriate
• by telephone, through the contact centre

or

• in person at a local Enquiry Centre.

Where a new subcontractor telephones the contact centre and wishes to register for gross tax treatment immediately, the contact centre will make an appointment for them at an Enquiry Centre of the applicant’s choice. The contact centre will advise the applicant of the various documents that the applicant will need to take with them in order for an Identity Check to be carried out, and that they should also take with them evidence of the turnover they intend to use for the registration form. The applicant will also be advised to take with them evidence to show that they also pass the Business and Turnover tests.

Once all this information has been seen the application form will be passed by Enquiry Centre staff to the CIS Team at National Insurance Contributions Office (NICO) for processing.

HM Revenue & Customs have made a commitment to process all gross payment applications as soon as possible after receipt.