CISR42620 - Register and maintain subcontractor: the registration process: register sole trader for payment under deduction - HMRC internal manual

CISR42620 - Register and maintain subcontractor: the registration process: register sole trader for payment under deduction

This action guide explains how to

process a registration application made by a sole trader on form CIS301 for CIS net registration
carry out the net registration stages for a sole trader seeking gross registration on form CIS302

Authenticate the application using the Action Guide at CISR22600.

This takes you to the 鈥楥IS Main Menu鈥� window

In the 鈥楥IS Main Menu鈥� window, 鈥楽ubcontractor registrations鈥� panel

Check whether the applicant

is already registered as a sole trader, that is, there is a 鈥楻egd鈥� entry under 鈥楽tatus鈥� on the 鈥楢s subcontractor鈥� line

or

has a registration application pending, that is, there is a no entry under 鈥楽tatus鈥� under the heading 鈥楽ubcontractor Registrations鈥� against this particular subcontractor鈥檚 UTR..

If so, write to the applicant saying that they are already registered for payment under deduction or an application for registration is already being considered.

If not, go to Step 3

Check whether the form CIS301 or form CIS302 is complete in all essential respects, that is

it is legible and has been signed and dated

the following fields have been completed

First name and surname

Home address

UTR

NINO

Date construction work started (or is expected to start)

type of construction work done

If the form is complete in all respects, go to Step 4

If the form is incomplete in some respects but includes a NINO entry, mark the entries that are deficient with an 鈥榅鈥� in pencil and return the form to the applicant for completion.

If the form is incomplete and the NINO is among the omitted entries, mark the deficient entries with an 鈥榅鈥� in pencil and write to the applicant

returning the form
asking them to complete the omitted entries, and arrange for a mobile adviser to attend for an ID check. Ask them to bring with them evidence of identity (See CISR42150).

Once the Identity check has been completed pass the now complete form to the CIS Team at the National Insurance Contributions Office (NICO) who will then process the registration application in the normal manner.

Where the form is being returned to the applicant by the CIS Team at NICO the registration application will be returned with a covering template letter (CIS366) which highlights the missing information required.

Resume registration when/if the amended form is returned.

In the 鈥楥IS Main Menu鈥� window, 鈥楽ubcontractor registrations鈥� panel

Select the 鈥楢s Sole trader鈥� checkbox.

Select 鈥楻egister subcontractor鈥� in the 鈥楳enu鈥� panel

At this point CIS will attempt to validate the NINO for the subcontractor using the Citizens Identification Framework (CID). If the NINO is validated you will be taken straight to the 鈥楽ole trader Details鈥� window. If the NINO cannot be validated the 鈥淚D Check鈥� window will appear, this window will allow you to enter the supporting documents supplied by the subcontractor to validate their identity.

If you consider that an 鈥淚D check鈥� is not required you should de-select the tickbox at the top of the window and enter a reason for this in the 鈥淩eason not Required鈥� field. (See CISR42150 for more information on identity checks). When checking the tickbox 鈥淥ther鈥� on this window the 鈥渇ree format鈥� field below the box must be completed showing the other type of identification the subcontractor has produced. Once all of the appropriate entries have been made on this window select [OK] and this will then take you to the 鈥淪ole Trader Details鈥� window.

At any time during the process a [Cancel] button is available to you in the bottom right hand corner of the window you are in. Selecting this will completely cancel the action you have taken so far and will return you to the CIS Main menu, the subcontractor should be advised that their registration for payment under deduction has not been effective, and that they will be subject to deduction at the higher rate.

This takes you to the 鈥楽ole trader Details鈥� window.

In the 鈥楽ole trader Details鈥� window you should always check that you have the correct subcontractor:

Check that the address entered at Box 4 or Box 14 on form CIS301, or Box 4 or Box 13 of form CIS302 matches the entry in the 鈥楢ddress鈥� field.

If so

Select the [Next] button (this takes you to the 鈥楾rading Details鈥� window)

Go to Step 7)

If not

select the [Change Address] button (this opens the 鈥楩ind Address鈥� window)

Go to Step 6)

In the 鈥楩ind Address鈥� window

Enter the building name or street number in the 鈥楬ouse ID鈥� field

Enter the postcode in the 鈥楶ostcode鈥� field

Select [Find] button (this opens the 鈥楩ind Address (2)鈥� window)

Check whether the address given appears in the 鈥楧etails鈥� panel

If so

Select the relevant address line entry.

Select the [Confirm Address] button (this takes you to the 鈥楽ole-trader details鈥� window)

Select the [Next] button (this takes you to the 鈥楾rading Details鈥� window)

If not

Enter the address given in the 鈥楢ddress/Postcode鈥� fields

Select the [No Match] button (this takes you to the 鈥楽ole-trader details鈥� window)

Select the [Next] button

This takes you to the 鈥楾rading Details鈥� window.

In the 鈥楾rading details鈥� window

Enter the date appearing in Box 11 of form CIS301 or Box 10 of form CIS302 in the 鈥楧ate started 鈥︹€� fields

Select the drop-down button in the 鈥楾ype of work in the construction industry鈥� field. If the subcontractor does not know the type of construction work they have been contracted for, after checking that the contract is not one of employment, you should then select 鈥淕eneral Builder鈥� from the list supplied.

Select the work-type from the list that most closely matches the entry made in Box 12 of the form CIS301 or Box 11 of form CIS302, or if there is no obvious match, select 鈥極ther鈥�

If you have selected 鈥極ther鈥� in the list, enter the description taken from Box 12 of form CIS301 or Box 11 of form CIS302 in the 鈥極ther鈥� field

If there is an entry in Box 13 of the form CIS301 or Box 12 of form CIS302, enter the name in the 鈥楾rading name鈥� field

If there is an entry at Box 14 of the form CIS301 or Box 13 of form CIS302, check that it matches the entry in the 鈥楾rading Address鈥� fields.

If so, go to Step 8)

If not

Select the [Change Address] button and the 鈥楩ind Address鈥� window opens

In the lower panel, select the entry that matches the Trading Address given by the applicant

Select the [Confirm Address] button or, if there is no match

Select the [No Match] button

This returns you to the 鈥楾rading Details鈥� window

In the 鈥楾rading details鈥� window

Check whether Box 15 of the form CIS301 or Box 14 of form CIS302 quotes a VAT number and if so, enter it in the 鈥榁AT Number鈥� field

Check that 鈥榊es鈥� has been selected at box at Box 17 of the CIS301 or Box 16 of form CIS302 and if so, select the checkbox alongside the question 鈥楬ave you been paid by a contractor since 6 April 2007?鈥� If 鈥楴o鈥� is shown at either Box17 or Box16 above no entry of this fact will be required, and you may proceed with the application for 鈥榩ayment under deduction鈥� or 鈥榞ross payment鈥� as appropriate.

The agent for whom an authorisation form is already held should automatically be shown in the Agents details box. If the applicant has confirmed at either Box 16 of the form CIS301 or Box 15 of form CIS302 that they wish to use the existing agent for the Construction Industry Scheme you should select the appropriate box. . If 鈥榶es鈥� is already selected against the agent you need take no further action.

If the application is on form CIS301

Select the [Apply for Net] button (this takes you to the 鈥楧eclaration鈥� window)

Go to Step 9) of this Action Guide

If the application is on form CIS302

Select the [Apply for Gross] button

Go to Step 2 of the Action Guide at CISR42630 - 鈥楻egister Sole Trader for Gross Payment (Paper)鈥�

In the 鈥楧eclaration鈥� window

Select the checkbox in the top right-hand corner of the panel.

Select the [OK] button

You should check again that the declaration has been signed before selecting the confirmation box at the top right of the window. If the application is being made by paper, the application form must be signed by the subcontractor, it cannot be signed by a Tax adviser on the subcontractor鈥檚 behalf.

Note - The wording on the 鈥楧eclaration鈥� window differs between applications for net payment status and applications for gross payment status. There will be no confirmation message to say that registration is complete.

In the unlikely event that the subcontractor refuses to make the declaration required that the information given is correct, you will need to select [Cancel] on this window.

If, at Step 8, you selected the checkbox 鈥楬ave you been paid by a contractor since 6 April 2007?鈥�, you will see a warning 鈥楶lease remember to search for unmatched verifications鈥�.

Select the [OK] button, this will take you back to the CIS Main Menu.

Carry out 鈥楿pdate Unmatched Verifications鈥� procedure

Put the form CIS301 away in the folder CIS31, see CISR18020 regarding maintaining internal records.

If the contact requires you to carry out further Registrations, then select the [New Customer] button, if however they do not then if you select the [End Contact] button this will take you back to the Identify Customer window. When selecting the [New Customer] button a message is displayed stating 鈥淐lick on the [New Customer] button again if a new customer is to be retrieved within the same contact鈥�, this message is merely to confirm that you wish to view another customers CIS record within the same contact. If you do not then you should select the [End Contact] button instead.

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Construction Industry Scheme Reform Manual