»Ê¹ÚÌåÓýapp

| CISR45600 | Action guide contents | |—————————————————————————————————–|———————–|

Detailed examination of this aspect of an application will generally occur as part ofthe post- acceptance check.

»Ê¹ÚÌåÓýapp subcontractor’s business must be carried out to a substantial extent by use of a bankor building society cheque account. »Ê¹ÚÌåÓýapp information given by the applicant in

• sections 18 - 20 of the application form CIS302 (for individuals)
• sections 29 - 31 of the application form CIS304 (for partnerships)
• sections 24 - 26 of the application form CIS305 (for companies)

should be enough to establish this. In addition, bank account details will be checkedby [the Bank Wizard] as part of initial application handling. Any application that doesnot show details of such a cheque account will automatically fail the business test.

Note that a bank account which is used both for private and business purposes isacceptable under the business test (see Jones v. Lonnen, 54TC714).

A business account is normally a current or cheque account, any case in which it appearsthat the account is a deposit account, or an account with the National Savings Bank,should be referred to a Higher Officer.

You should not normally accept a savings or deposit account as one by means of which thebusiness is carried on ‘to a substantial extentâ€� (FA2004/SCH11/PARA 2(b)). »Ê¹ÚÌåÓýapp exceptionto this might be where there is a business which does not involve much in the way ofpayments made out. For example, the subcontractor does not purchase materials, does nothave employees and does not engage subcontractors.

»Ê¹ÚÌåÓýapp Higher Officer may, at their discretion, ask for statements for any account which theapplicant says is a business account. Where you inspect statements, you should beconsidering the question whether the business can be said to be carried on ‘to asubstantial extentâ€� by means of the account in question.

In partnership cases the account must be one through which the partnership business issubstantially conducted and be in the name of the firm.

»Ê¹ÚÌåÓýapp fact that the legislation and this guidance refers to ‘an accountâ€� does not mean thatthe whole of the business must be conducted by means of a single account. It is quiteacceptable that more than one account is used for business purposes.