CISR46610 - Register and maintain subcontractor: compliance test: making a s64(5) direction

This action guide explains how to make a s64(5) direction. For guidance on the circumstances where you should do so, see CISR46110 for the associated information page

• Write to the company secretary along the lines of the letter below, leaving out or replacing the words in square brackets as appropriate.

“Under powers delegated to me by the Board of HM Revenue & Customs I hereby direct that, in considering the recent application for Gross Payment within the Construction Industry Scheme, the conditions set out in Section 64(5) Finance Act 2004 shall apply to the directors of the company, including the following individuals:-
(List all directors as shown on the application form) (and to the beneficial holders of shares in the company including the following individuals:-] [List all the beneficial shareholders shown on the application form).
If, for any reason, including a change in the directorships [or the beneficial ownership of shares]

please let me have the relevant details.
To enable me to complete a review of their affairs will you please arrange for each director [and each beneficial shareholder] to complete the enclosed authority. Please also supply a written authority in the same form for any director [or shareholder] not named above. These forms of authority should be returned to me as soon as possible. Consideration of the company's application cannot be completed until I have received them all.”

• Delete the references to beneficial shareholders on an appropriate number of forms CIS325 where the company is not close.
• Send the letter and the forms CIS325 to the company's registered address.
• Take no further action on the assessment of the application until you have received all the forms CIS325.

When you receive the completed forms CIS325, you should consider the applicant company’s suitability for gross payment, see the guidance at CISR43700 relating to this.