When you receive accounts or a return for a business that is not
already treated as a contractor, you should examine the return or
accounts to see whether the amount spent on construction operations
is now enough for the business to be considered a deemed contractor
(See
CISR12050). This is in order to
identify clear-cut cases.
Time need not be spent on detailed examination of cases
which are only likely to be near the £1 million average
threshold. Businesses whose annual expenditure fluctuates
marginally above and below the limit should not be required to
operate CIS.
If you conclude that a business should be classified as a
deemed contractor as a result of this examination, you should
consider the guidance at
CISR12060 to establish when the
business should be required to operate the Scheme.
