Once a business becomes a deemed contractor by virtue of
FA04/s59 (1)(l) it does not lose contractor status until
expenditure on construction operations in each of three successive
years has been less than £1 million.
Where a business claims that it is no longer a deemed
contractor because less than £1 million has been spent
each year in each of the three years preceding the end of the last
period of account, the claim should be accepted with a minimum of
checking.
In this case you should follow the guidance at
CISR31050.
Any case of doubt or difficulty should be referred to the CIS
Advisory Team for advice (see
CISR97030).
