PART XIII MISCELLANEOUS SPECIAL PROVISIONS
CHAPTER IV SUB-CONTRACTORS IN THE CONSTRUCTION INDUSTRY
562 Conditions to be satisfied by individuals.
(1)
In the case of an application for the issue of a certificate under section 561 to an individual F1. . . the following conditions are required to be satisfied by that individual F2except that, where the application is for the issue of that certificate to that individual as a partner in a firm, this section shall have effect with the omission of subsections (2) to (2B).
(2)
M1The applicant must be carrying on a business in the United Kingdom which satisfies the following conditions, that is to say—
(a)
the business consists of or includes the carrying out of construction operations or the furnishing or arranging for the furnishing of labour in carrying out construction operations;
(b)
the business is, to a substantial extent, carried on by means of an account with a bank;
(c)
the business is carried on with proper records and in particular with records which are proper having regard to the obligations referred to in subsections (8) to (12) below; and
(d)
the business is carried on from proper premises and with proper equipment, stock and other facilities.
F3(2A)
The applicant must satisfy the Board, by such evidence as may be prescribed in regulations made by the Board, that the carrying on of the business mentioned in subsection (2) above is likely to involve the receipt, annually in the period to which the certificate would relate, of an aggregate amount by way of relevant payments which is not less than the amount specified in regulations made by the Board as the minimum turnover for the purposes of this subsection.
(2B)
In subsection (2A) above “relevant payments” means the following payments, other than so much of them as would fall, as representing the direct cost to any person of any materials, to be disregarded in calculating the amount of any deductions under subsection (4) of section 559, that is to say—
(a)
payments from which such deductions would fall to be made if the certificate is not granted; and
(b)
payments which would be such payments but for any regulations under subsection (3A) of that section.
(3)
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(4)
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(5)
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(6)
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(7)
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(8)
M2The applicant must, subject to subsection (10) below, have complied with all obligations imposed on him by or under the Tax Acts or the Management Act in respect of periods ending within the qualifying period and with all requests to supply to an inspector accounts of, or other information about, any business of his in respect of periods so ending.
(9)
M3An applicant who at any time in the qualifying period had control of a company shall be taken not to satisfy the condition in subsection (8) above unless the company has satisfied that condition in relation to periods ending at a time within that period when he had control of it; and for this purpose “control”F5shall be construed in accordance with section 416(2) to (6).
(10)
M4An applicant or company that has failed to comply with such an obligation or request as is referred to in subsection (8) above shall nevertheless be treated as satisfying that condition as regards that obligation or request if the Board are of the opinion that the failure is minor and technical and does not give reason to doubt that the conditions mentioned in subsection (13) below will be satisfied.
F6(11)
Where the applicant states, for the purpose of showing that he has complied with all obligations imposed on him as mentioned in subsection (8) above, that he was not subject to any of one or more obligations in respect of any period ending within the qualifying period—
(a)
he must satisfy the Board of that fact by such evidence as may be prescribed in regulations made by the Board; and
(b)
if for that purpose he states that he has been outside the United Kingdom for the whole or any part of the qualifying period, he must also satisfy them, by such evidence as may be so prescribed, that he has complied with any obligations imposed under the tax laws of any country in which he was living during that period which are comparable to the obligations mentioned in subsection (8) above.
(12)
M5The applicant must, if any contribution has at any time during the qualifying period become due from him under Part I of the M6Social Security Act 1975 or Part I of the M7Social Security (Northern Ireland) Act 1975, have paid the contribution when it became due.
(13)
M8There must be reason to expect that the applicant will, in respect of periods ending after the end of the qualifying period, comply with such obligations as are referred to in subsections (8) to (12) above and with such requests as are referred to in subsection (8) above.
F7(13A)
Subject to subsection (10) above, a person shall not be taken for the purposes of this section to have complied with any such obligation or request as is referred to in subsections (8) to (11) above if there has been a contravention of a requirement as to the time at which, or the period within which, the obligation or request was to be complied with.
(14)
In this section “the qualifying period”, in relation to an application for the issue of a certificate under section 561, means the period of three years ending with the date of the application.