CISR17260 - The Scheme: secondary
legislation: regulation 25
This regulation deals with the registration provisions for gross
or net payment status and registration cancellation for those on
net payment status: to be read in conjunction with FA04/S63.
When applying to be registered for the scheme, either for
gross payment or under deduction, subcontractors must provide
sufficient information and evidence to satisfy HMRC as to their
identity. This may include -
- a birth certificate: SI2005/2045 reg
25(1)(a).
- name, address, NINO and UTR of: individual (if a
sole trader); all partners (if a partnership); all directors or
beneficial shareholders (if a company): SI2005/2045 reg 25(1)(b)(i)
to (iii).
- utility bills: SI2005/2045 reg 25(1)(c).
- council tax bills: SI2005/2045 reg 25(1)(d).
- a passport: SI2005/2045 reg 25(1)(e).
- a driving licence: SI2005/2045 reg 25(1)(f).
- company registration number: SI2005/2045 reg
25(1)(g).
- company’s memorandum and articles of
association: SI2005/2045 reg 25(1)(h).
HMRC may require the applicant to present any of the above in
person: SI2005/2045 reg 25(2).
If HMRC are not satisfied by the evidence presented to
confirm identity, they may refuse to register the applicant for net
payment status but must provide a notice advising the reasons for
refusal: SI2005/2045 reg 25(3).
If HMRC suspect, at any time, that a person has
- in respect of (1) provided false or incorrect
information : SI2005/2045 reg 25(4)(a).
- under any provision of FA04: Chapter 3 or the
regulations, provided a fraudulent or incorrect return or provided
incorrect information, whether as a contractor or subcontractor:
SI2005/2045 reg 25(4)(b).
- knowingly, as a contractor or subcontractor,
failed to comply with the provisions of the scheme: SI2005/2045 reg
25(4)(c).
- they may issue a notice immediately withdrawing
registration for payment under deduction, giving the reasons for
the cancellation: SI2005/2045 reg 25(4).
A person can appeal against a withdrawal or refusal notice by
giving notice to HMRC. The time limits and grounds for appeal are
set out in Table 2 of SI2005/2045 reg 25(5).
ENABLING PROVISION – FA04/S63 (1) & S68
