CISR49030 - Register and maintain subcontractor: scheduled review: withdrawal of gross payment status

Once a Scheduled Review has taken place, and the result from the Tax Treatment Qualifying Test (TTQT) is a “Fail”. The subcontractor will be notified by the issue of a form CIS308 that they will lose their gross payment status 90 days after the issue of the notice, a copy of this notice will also be sent to the subcontractor’s Customer Level Agent (See CISR19020 for more information about Customer Level Agents) If no appeal has been made by the subcontractor at day 55 after the notification of the change of payment status, all contractors who have paid or verified the subcontractor within the last two years will be notified that the subcontractor’s tax treatment is to be changed from “gross” to “net” from the “appointed day” which is 90 days after the issue of the original notice.

See the instruction at CISR49040 regarding Scheduled Review and appeals against withdrawal of gross payment status.

See also CISR43000 for more detailed instructions on the changing of a subcontractor’s payment status from gross to net, and see CISR48000 for the handling of an appeal by the subcontractor against the refusal to grant gross payment status.