CISR43140 - Register and maintain subcontractor: gross payment or payment under deduction: change in the type of concern

In the guidance that follows we use the term concern to mean a business entity, so that it includes sole trader subcontractors, partnerships and companies. Where the CIS Team at NICO receives an application involving a change in the type of concern (for example, where the members of the partnership has changed, or where previously registered sole traders have now formed a partnership), these will be referred (with a covering memo) to the Processing Office of the business, to take action on Self Assessment (SA) to ensure that the SA record is updated, see the Self Assessment Manual (SAM) at SAM101000. Once the SA record has been updated the Processing office should then continue to process the Registration application from the partnership for either net or gross payment status, and these should not be referred back to the CIS Team at NICO

No change in type

Where the number of partners within an existing partnership, or the directors or shareholders in an existing company changes, there is no change in the type of concern, new partners or directors will however, be subject to the compliance test.

Change in type of concern

Separate information panels give more detail on each of the following specific changes in type of concern. General information applicable to all cases can be found in the rest of this panel. Use the links below to view specific details for each case.

In any of the above cases, a change of concern of a different type is created which will need to re-register either for gross or net payment status. The applicant should inform HMRC of the details of the change and make an application to re-register for either gross or net payment status.

Which turnover test the new concern uses depends on the circumstances of the change in concern. Further information can be found at