Scheduled Review is another name given to the annual Tax
Treatment Qualifying Test (TTQT) which is carried out automatically
against all current subcontractor records (except for Trust
subcontractors), this process will start from October 2007. It is
anticipated that the scheduled review will be run at least once
during a 12 month period against every subcontractor record, and is
run to confirm whether or not the subcontractor is meeting
all of their obligations under the Taxes Acts, and
that therefore they may continue with (or gain) gross payment
status under CIS.
Where however the subcontractor is a Trust, CISR will not be
able to carry out the Scheduled Review automatically. Therefore any
Scheduled Review for a Trust type of subcontractor will have to be
done manually, and this work will be carried out each year for the
Trust subcontractor by the CIS Advisory Team (See
CISR97030).
The areas that will be tested will be the same as for the
Tax Treatment Qualifying Test (TTQT) (see the instruction at
CISR43070 for a full explanation of
these). Scheduled Review however for a company subcontractor will
only look at the Compliance of the company itself
only and not at the Directors or Shareholders of the
company. For Partnerships, all the partners will have the same
scheduled review date (this will include any new partners admitted
to the business since the last scheduled review), and so the
Scheduled Review for a Partnership will look at not only the
Compliance of the Partnership itself but all of the partners in the
business.
Scheduled Review will not take place at the same time each
year for each subcontractor and cases are selected for Scheduled
Review by the computer randomly. So for example in 2008- 09 the
Scheduled Review might take place in October 2008, in 2009-10 it
might take place in September 2009, and for 2010-11 it could take
place again in August or September 2010. However in
all cases the scheduled review will look back at
the last 12 months to see whether the subcontractor has met all of
their obligations during that period.
Note: You should not get drawn into any
discussions with the subcontractor as to when the automatic TTQT
will be carried out. It is sufficient to advise that this will be
at least once in any 12 month period.
Where CIS detects that a subcontractor has made some
compliance failures since the last Scheduled Review was undertaken,
(for example, four late monthly contractor returns have been
submitted since October 2008). This will mean that the Scheduled
Review will be run by the computer at an earlier time than
otherwise it would have, had these failures not occurred.
Also for a short period from the introduction of Scheduled
Review in October 2007 any case which fails the scheduled review,
will firstly be generated onto an Incomplete TTQT worklist. This is
so that a manual TTQT can be carried out to confirm the result
found by the computer. To undertake this manual TTQT please refer
to the instructions at
CISR43070 which will direct you to the
appropriate instructions depending upon whether the applicant
subcontractor is an individual, a partner in a partnership or a
company. It is anticipated that this specific worklist entry will
be handled by a centralised team.
