CISR43630 - Register and maintain subcontractor: gross payment or payment under deduction: changing a subcontractor's tax treatment from net to gross
| CISR Reference | Topic |
|---|---|
| CISR43000 | Information contents |
This action guide tells you how to change a subcontractor바카라 사이트™s tax treatment from net to gross. If you receive a telephone request to change the tax treatment from net to gross the applicant should be referred to the Contact Centre. Alternatively you should issue form CIS302, CIS304 or CIS305 as applicable.
- From CIS Main Menu
- Select the relevant record from the list presented.
- Select [Request New TT] from the menu.
- This will take you to the 바카라 사이트˜Request Change of Tax Treatment바카라 사이트™ window. The current tax treatment will be displayed.
- Select [Change to Gross] button.
This will take you to the 바카라 사이트˜Turnover Test/Business Test바카라 사이트™ Window바카라 사이트™.
See the following Action Guides for more information on how to complete the statutory tests for gross payment status
| CISR Reference | Taxpayer |
|---|---|
| CISR42630 | Register sole trader for gross payment |
| CISR42650 | Register partnership for gross payment |
| CISR42670 | Register Company for gross payment |
| CISR42710 | Register unincorporated body for gross payment |
| CISR42690 | Register trust for gross payment |
- Complete the Turnover Test Details and Business Test Details and select [Next].
Please note you will not receive confirmation messages on completion of each section. You will need to navigate back through the screens to correct an error.
This will take you to the 바카라 사이트˜Employment History바카라 사이트™ window.
- Answer the employment question by selecting the relevant radio button.
If the 바카라 사이트˜No바카라 사이트™ button has been selected you must complete the 바카라 사이트˜Reasons for Non-Employment바카라 사이트™. Select a reason from the drop down box. If the reason does not appear in the list select [Other]. This will allow you to enter the reason in free format. Input the relevant 바카라 사이트˜From바카라 사이트™ and 바카라 사이트˜To바카라 사이트™ dates in the boxes presented to you.
- Go to [Next]
- Complete the 바카라 사이트˜Employer Obligations바카라 사이트™ window. If the subcontractor is an employer select the 바카라 사이트˜Yes바카라 사이트™ radio button. If not, select the 바카라 사이트˜No바카라 사이트™ radio button. You will need to input the Accounts Office reference number for all schemes held by the subcontractor.
- Select [Next]
This will take you to the mandatory declaration window.
- Select the box confirming the declaration.
- Select [OK]
You will be taken back to the main menu - there is no confirmation message.
The system will now automatically run TTQT. The subcontractor will be advised of the outcome of TTQT and will be notified as to whether gross payment status has been granted or not. If it has not been granted the subcontractor will be notified of the reasons why their application for gross payment status has failed. The subcontractor will have the right of appeal against failure to grant gross payment status.
The system will not allow you to proceed with an application to change a subcontractor바카라 사이트™s tax treatment from net to gross in the following circumstances
There is an outstanding or incomplete TTQT already being dealt with.
The system will update the contact history to indicate that 바카라 사이트˜The subcontractor바카라 사이트™s request was not actioned due to an Outstanding or Incomplete Tax Treatment Qualification Test바카라 사이트™. The system will automatically set the outstanding TTQT request at a higher priority in order that it is completed as soon as possible. Where an error message is displayed to you saying that TTQT was in the process of being run, you should select the [Cancel] button which will take you back to the CIS Main Menu.
The application for gross payment falls within an 바카라 사이트˜exclusion period바카라 사이트™.
On selecting the [Apply for gross] button a prompt will appear advising that the subcontractor is not eligible to apply for gross tax treatment. An 바카라 사이트˜exclusion period바카라 사이트™ will begin on the day that gross payment status was removed, and will continue for a twelve month period from this date. The date the 바카라 사이트˜exclusion period바카라 사이트™ ends will be shown;
- advise the subcontractor of the earliest date when they will be able to make an application for gross payment status
There is an outstanding open subcontractor appeal against the refusal to grant gross payment status.
The system will not allow you to process a further application for gross payment status while there is an outstanding appeal. The subcontractor can choose to withdraw their appeal and maintain net payment status.
Changing a Subcontractor바카라 사이트™s Tax treatment from net to gross because of an incorrect Tax Treatment Qualification Test (TTQT) result
You will need to be in the Compliance Manager or Process Manager roles within CIS;
- From [CIS Main Menu] select the relevant subcontractor registration.
- From [Menu] select 바카라 사이트˜Change TT바카라 사이트™.
This will take you to the 바카라 사이트˜Change Subcontractors Tax Treatment바카라 사이트™ window and will show the current tax treatment at the top of the window.
- Under the title bar called 바카라 사이트˜Change Tax Treatment to Gross바카라 사이트™ use the drop down menu alongside 바카라 사이트˜Reason for Change바카라 사이트™ to make the selection that matches the circumstances of the particular case. The available options are:
-
- Upheld appeal
- False registration information
- Auth - Processing manager
- Auth - Compliance manager
- Auth - Central Compliance
- Auth - Civil Investigation
- Select either 바카라 사이트˜Auth - Processing manager바카라 사이트™ or 바카라 사이트˜Auth - Compliance manager바카라 사이트™ from the drop-down menu.
The next scheduled review date will be set automatically and will be 12 months from today바카라 사이트™s date.
- Select [Change to Gross]
The payment status for the subcontractor will now be changed to gross effective immediately, and the contractors that the subcontractor is associated with will be notified of the change of tax treatment by the issue of letters CIS316 (the 바카라 사이트˜contact history바카라 사이트™ note of the issue of the CIS316 will only appear on the contractor record, and will not appear on the 바카라 사이트˜contact history바카라 사이트™ for the subcontractor).