The Income Tax (Sub-contractors in the Construction Industry) (Amendment) Regulations 1998

Amendments to Part V of the principal Regulations

33.  Immediately before regulation 41 in Part V of the principal Regulations the following regulation shall be inserted—

“Returns by contractor at end of year

40A.— (1) The contractor shall render a return to the inspector or, if so required, to the collector, not later than 44 days after the end of the year, in such form as the Board may approve or prescribe, containing the particulars specified in paragraph (3) in respect of all sub-contractors not excepted from section 559(1) to whom payments to which that section applies were made by him during the year.

(2) The contractor shall render a return to the inspector or, if so required, to the collector, not later than 44 days after the end of the year, in such form as the Board may approve or prescribe, containing the particulars specified in paragraph (6) in circumstances where a sub-contractor is excepted from section 559.

(3) The particulars specified in this paragraph are—

(a) the year to which the return relates,

(b) the total amount of payments to which section 559 applies made by the contractor during the year,

(c) the total amount, if any, included in those payments which the contractor is satisfied represents the direct cost to any person other than the contractor of materials used in carrying out the construction operations to which the contracts under which the payments were made related, and

(d) the total amount deducted from the payments mentioned in sub-paragraph (b) under section 559.

(4) The return required by paragraph (1) shall be supported by the particulars specified in paragraph (5).

(5) The particulars specified in this paragraph are—

(a) a list of all sub-contractors not excepted from section 559 to whom payments to which that section applies were made by the contractor during the year, and

(b) in respect of each such sub-contractor—

(i) the name and distinctive reference number taken from that sub-contractor’s registration card,

(ii) the total amount of payments to which section 559 applies made by the contractor to that sub-contractor during the year,

(iii) the total amount, if any, included in those payments which the contractor is satisfied represents the direct cost to any person other than the contractor of materials used in carrying out the construction operations to which the contracts under which the payments were made related, and

(iv) the total amount deducted from the payments in sub-paragraph (ii) under section 559.

(6) The particulars specified in this paragraph are—

(a) the total amount of contract payments made by the contractor during the year, to companies excepted from section 559, which hold a sub-contractor’s tax certificate in the form numbered CIS5 in Schedule 1 to these Regulations; and

(b) the total amount of contract payments made by the contractor during the year, to persons excepted from section 559, who hold a sub-contractor’s tax certificate in the form numbered CIS6 in that Schedule.

(7) The return required by paragraph (2) shall be supported by the particulars specified in paragraph (8).

(8) The particulars specified in this paragraph are—

(a) a list of all companies excepted from section 559, who hold a sub-contractor’s tax certificate in the form numbered CIS5 in that Schedule, to which the contractor made any contract payment during the year;

(b) a list of all persons excepted from section 559, which hold a sub-contractor’s tax certificate in the form numbered CIS6 in that Schedule to whom the contractor made any contract payment during the year; and

(c) in respect of each of the sub-contractors mentioned in sub-paragraphs (a) and (b)—

(i) the distinctive reference number taken from that sub-contractor’s tax certificate, and

(ii) the total amount paid by the contractor to that sub-contractor in that year, in relation to which the sub-contractor was excepted from section 559.

(9) The particulars specified in paragraphs (5) and (8) either—

(a) shall be contained in a document provided by the Board for that purpose or approved by the Board, which shall accompany the relevant return, or

(b) not later than the end of the day on which the relevant return is rendered, shall be transmitted electronically to the inspector or collector to whom the return is rendered.

(10) The returns required by paragraphs (1) and (2) shall include a declaration and certificate in the form approved by the Board, stating that—

(a) all particulars required to be provided for the year in accordance with this regulation have been provided, and

(b) those particulars are complete and accurate to the best of the contractor’s knowledge and belief.

(11) A contractor shall make and keep such records as will enable him to comply with the requirements specified in paragraphs (1) to (10) above.

(12) Where the contractor is a company, the declaration and certificate mentioned in paragraph (10) shall be signed either by the secretary or by a director of the company.

(13) If a contractor has failed to pay the total amount which he is liable under these Regulations to pay to the collector within 14 days of the end of any year, the collector may prepare a certificate showing the amount remaining unpaid for that year.

(14) Paragraphs (1) to (5) of regulation 19 shall apply to the amount shown on a certificate under paragraph (13) with the modification that summary proceedings for the recovery of that amount or such part of it as remains unpaid may be brought at any time before the expiry of—

(a) twelve months after the date limited for delivery of the return mentioned in paragraph (1), or

(b) if that return is not delivered by that date, the expiry of twelve months after its delivery.

(15) A certificate of the collector under paragraph (13) that the amount mentioned for that year has not been paid to him, or, to the best of his knowledge and belief, to any other collector, or to any person acting on his behalf or on behalf of another collector, shall be sufficient evidence that the sum mentioned in the certificate is unpaid and is due to the Crown.

(16) Section 98A of the Management Act(2) shall apply to the provisions of paragraphs (1) and (3) to (5), requiring a return to be made.”.

(1)

1988 c. 1. Section 559 was amended by paragraph 1 of Schedule 27, and Part VIII(21) of Schedule 29, to the Finance Act 1995, by section 54(5) of the Finance Act 1997 (c. 16), by paragraph 2(1) of Schedule 8 to the Finance Act 1998, and by S.I. 1989/2405 (N.I.19).

(2)

1970 c. 9. Section 98A was inserted by section 165 of the Finance Act 1989 (c. 26).