CISR18060 - The Scheme:
miscellaneous: changes in taxpayer type
There are three main types of taxpayer for the purposes of
the construction industry scheme; the sole trader, the partnership
and the company. CIS taxpayer records are created when a parent SA
or COTAX record exists and steps are taken to set up a CIS record.
Where a taxpayer changes type, there will be changes to the
parent SA or COTAX records. Those changes will feed through to the
CIS system. Likely changes of type and their implications for the
various HMRC systems are described as follows
| Sole trader to
partnership | See A below |
| Partnership to sole
trader | See B below |
| Sole trader to
company | See C below |
| Partnership to
company | See D below |
| Change in the
constitution of a partnership | See E below |
A - Sole trader to partnership
This change may lead to
- cessation of the sole trader source on the
trader's SA record (SAM).
- cessation of the sole trader on the CIS
system (when functionality permits).
- any necessary change to the BROCS
system.
- creation of a partnership source on the
trader's SA record (SAM).
- creation of a record for the partnership
on SA and allocation of a UTR; (SAM).
B - Partnership to sole trader
This change may lead to
- cessation of this partnership source on
each of the partners' SA records (SAM).
- cessation of the partnership on the CIS
system (when functionality permits).
- any necessary change to the BROCS
system.
- creation of a sole trader source on the SA
record for all partners continuing to trade as sole traders;
(SAM).
C - Sole trader to company
This change may lead to
- cessation of the sole trader source on the
trader's SA record (SAM).
- cessation of the sole trader on the CIS
system (when functionality permits).
- any necessary change to the BROCS
system.
- creation of a company record on the COTAX
system and allocation of a UTR.
- issue of an application form CIS305 to the
company.
D - Partnership to company
This action may lead to
- cessation of the partnership source on
each of the partners' SA records (SAM).
- cessation of the partnership source on the
CIS system (when functionality permits)..
- any necessary change to the BROCS
system.
- issue of application form CIS305 to the
company.
E - Change in the constitution of a partnership
This is not a change in the type of concern, but some of the
implications are similar. This action may lead to the
- need to change the partnership name
(SAM).
- issue of an application form CIS304 for
any new partner on request only.
