»Ê¹ÚÌåÓýapp

| CISR43600 | Action guide contents | |—————————————————————————————————–|———————–|

»Ê¹ÚÌåÓýapp tests for gross payment status are covered elsewhere in the guidance as follows

• turnover test (see CISR44000 onwards)
• business test (see CISR45000 onwards)
• compliance test (see CISR46000 onwards)

Each of these tests must be passed in order to qualify for gross payment status. This part of the guidance gives an overview of the handling of a gross payment application through the entire process.

Turnover test

In order to obtain gross payment status an applicant must satisfy certain conditions relating to the ‘Net Construction Turnoverâ€� of the business. »Ê¹ÚÌåÓýapp turnover limits are defined in the legislation. If a case fails the turnover test the system will provide specific reasons for failure and automatically advise the applicant of the reasons why the application has failed the turnover test.

Business Test

To satisfy the business test, an applicant must provide details of a current bank account through which their business is conducted and confirm that they are carrying out construction operations in the UK. »Ê¹ÚÌåÓýapp system will use ‘Bank Wizardâ€� to check the validity of the information provided, for example, it will check if the sort code is valid and allocated to a UK bank branch. It does not check that the bank account details belong to the applicant. »Ê¹ÚÌåÓýapp system is not able to verify the following accounts:

• building society accounts
• foreign bank accounts.
• old bank accounts
• recently opened accounts

Compliance test

»Ê¹ÚÌåÓýapp Tax Treatment Qualification Test (TTQT) checks the compliance history of a subcontractor (See CISR43070). If the test result fails the CIS system provides the reasons for failure. FA04/S64 specifies the conditions that must be met in order to pass the compliance test. »Ê¹ÚÌåÓýappse conditions are subject to certain tolerances defined in SI2005/2045 reg 32.