The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993

PART III SUB-CONTRACTOR'S TAX CERTIFICATES, VOUCHERS AND GUARANTEES

Powers of inspectors

21.  The power to issue, renew, require the surrender of or cancel a sub-contractor’s tax certificate or to give directions under subsection (6) of section 561 may be exercised by an inspector.

Absence abroad—evidence of living outside the United Kingdom

22.—(1) Where—

(a) an applicant must satisfy the Board for the purposes of section 562, or

(b) a partner must satisfy the Board for the purposes of section 563,

that he has been outside the United Kingdom for the whole or part of the period in question, the evidence by which he is so to satisfy the Board shall be the evidence prescribed in paragraphs (2) and (3).

(2) Subject to paragraph (3), where the person in question claims to have been employed or self-employed outside the United Kingdom during any part of the period in question, the evidence shall be any document from the Revenue Department or equivalent department of the country in which he claims to have been living which confirms his presence there throughout that part of the period in question.

(3) Where the person in question claims—

(a) not to have been employed or self-employed while outside the United Kingdom during any part of the period in question, or

(b) to have been employed or self-employed outside the United Kingdom during any part of the period in question but not to have been liable to tax in the country in which he claims to have been living during that part of the period in question,

the evidence shall be any document from the Social Security Department or equivalent department, or from the immigration authorities, or from any other Government department of the country in which he claims to have been living which confirms his presence there throughout that part of the period in question.

(4) In this regulation and in regulation 23—

• “applicant” has the same meaning as in section 562;

• “the period in question” means the period between the ending of a period of three years throughout which the person in question has been employed (as mentioned in subsection (3) of section 562 and subsection (2) of section 563) and the date of his application for a sub-contractor’s tax certificate.

• “the person in question” means an applicant referred to in paragraph (1) (a) or a partner referred to in paragraph (1) (b).

Absence abroad—evidence of compliance with tax obligations

23.—(1) Where—

(a) an applicant must satisfy the Board for the purposes of section 562, or

(b) a partner must satisfy the Board for the purposes of section 563,

that he has complied with any obligations imposed under the tax laws of any country in which he was living during the period in question which are comparable to the obligations mentioned in the relevant subsection, the evidence by which he is so to satisfy the Board shall be the evidence prescribed in paragraph (2).

(2) The evidence shall be such notices or documents issued by the Revenue Department or equivalent department of the country in which the person in question claims to have been living as confirm that the obligations have been complied with.

(3) in this regulation “the relevant subsection” means—

(a) in the case of an applicant, subsection (8) of section 562, or

(b) in case of a partner, subsection (5) of section 563.

Forms of sub-contractor’s tax certificate

24.—(1) A sub-contractor’s tax certificate shall be prepared by the Board in one of the forms numbered 714I, 714S, 714P and 714C in Schedule 1 to these Regulations.

(2) Where such a certificate is issued to an individual otherwise than as a partner in a firm or as a user of a certificate in the form numbered 714S in Schedule 1, it shall be in the form numbered 714I in Schedule 1; and the certificate shall show—

(a) the individual’s name,

(b) his national insurance number,

(c) his usual signature,

(d) a full face photograph, being a true likeness of him,

(e) the date from which the certificate is valid,

(f) the date of its expiry,

(g) the distinctive number assigned to it, and

(h) where the individual so wishes, one business name under which his business is carried on.

(3) Where such a certificate is issued to an individual to whom subsection (4) of section 561 applies, it shall be in the form numbered 714S in Schedule 1 and shall refer to the special conditions under which it is issued; and the certificate shall also show—

(a) the individual’s name,

(b) his national insurance number,

(c) his usual signature,

(d) a full face photograph, being a true likeness of him,

(e) the date from which the certificate is valid,

(f) the date of its expiry,

(g) the distinctive number assigned to it, and

(h) where the individual so wishes, one business name under which his business is carried on.

(4) Where such a certificate is issued to an individual as a partner in a firm, it shall be in the form numbered 714P in Schedule 1; and the certificate shall show—

(a) the individual’s name,

(b) his national insurance number,

(c) his usual signature,

(d) a full face photograph, being a true likeness of him,

(e) the date from which the certificate is valid,

(f) the date of its expiry,

(g) the distinctive number assigned to it, and

(h) the words “Acting for”,

(j) the name of the firm, and

(k) subject to paragraph (8), and where the individual so wishes, one business name under which the firm’s business is carried on.

(5) Subject to paragraph (6), where such a certificate is issued to a company (and more than one such certificate may be issued to a company), it shall be in the form numbered 714P in Schedule 1; and the certificate shall show—

(a) the name of the secretary or director of the company who is authorised to use the certificate,

(b) his usual signature,

(c) a full face photograph, being a true likeness of him,

(d) the date from which the certificate is valid,

(e) the date of its expiry,

(f) the distinctive number assigned to it,

(g) the words “Acting for”,

(h) the name of the company,

(j) the registration number of the company, and

(k) subject to paragraph (8), and where the secretary or director of the company so wishes, one business name under which the company’s business is carried on.

(6) If in any case the inspector considers that in all the circumstances the form of certificate mentioned in paragraph (5) would be inappropriate, he may issue a certificate to the company in the form numbered 714C in Schedule 1 showing the words “For a company not required to use sub-contractor’s vouchers”; and the certificate shall also show—

(a) the usual signature of the secretary of the company at the date of issue,

(b) the word “Original”,

(c) the date from which the certificate is valid,

(d) the date of its expiry,

(e) the distinctive number assigned to it,

(f) the name of the company,

(g) the registration number of the company, and

(h) where the secretary of the company so wishes, one business name under which the company’s business is carried on.

(7) Where an inspector has issued a certificate under paragraph (6), he may also issue one or more additional certificates to the company and each such additional certificate shall be in the form numbered 714C in Schedule 1; and each certificate shall—

(a) have its own additional distinctive serial number, and

(b) show the particulars mentioned in paragraph (6), except that there shall be substituted for the word “Original” the words “Official Copy”.

(8) Where a certificate mentioned in paragraph (4) or (5) shows one business name under which the firm’s or company’s business is carried on, that business name shall also appear on all other certificates issued to the firm or company under section 561 and currently in force.

Issue of sub-contractor’s tax certificate

25.—(1) A sub-contractor’s tax certificate in the form specified in regulation 24(2), (3) or (4) shall be issued by an inspector to the person whose name, national insurance number and photograph appear on it, and that person shall sign it immediately on receipt.

(2) A sub-contractor’s tax certificate in the form specified in regulation 24(5) shall be issued by an inspector to the company whose name and registered number appear on it, and the secretary or director of the company who is authorised to use the certificate shall sign it immediately on receipt.

(3) A sub-contractor’s tax certificate in the form specified in regulation 24(6) or (7) shall be issued by an inspector to the company whose name and registered number appear on it, and the secretary of the company shall sign it immediately on receipt.

Validity of sub-contractor’s tax certificate

26.—(1) Subject to paragraph (2), a sub-contractor’s tax certificate shall be valid, during the period specified in paragraph (3), for the purpose of allowing payments to be made to the user without the deduction required by section 559 and for no other purpose.

(2) A user of a sub-contractor’s tax certificate in the form numbered 714S as specified in regulation 24(3) shall not be excepted from the provisions of section 559 to the extent that the amount of a contract payment, or the aggregate amount of that payment and any other such payment or payments made in one week, whether from the same or any other contractor or contractors, exceeds the weekly limit, being £150 in any week.

(3) The period specified in this paragraph is—

(a) in the case of a certificate issued before 1st October 1990, the period from the date of its issue, or

(b) in the case of a certificate issued on or after 1st October 1990, the period on and after the first day of the month and the calendar year which are shown on it as the date from which it is valid,

until the last day of the month and the calendar year which are shown on it as the date of expiry.

Renewal of sub-contractor’s tax certificate

27.—(1) At any time within a period of six months before the date of expiry of a sub-contractor’s tax certificate, the person to whom it was issued may apply for its renewal.

(2) The provisions of section 561 shall apply to an application for renewal in the same way as they apply to an application for the issue of a sub-contractor’s tax certificate.

(3) The provisions of the Taxes Act and of these Regulations shall apply to a renewed certificate in the same way as they apply to a sub-contractor’s tax certificate.

Production for inspection and surrender of sub-contractor’s tax certificate

28.—(1) A user shall produce his sub-contractor’s tax certificate for inspection whenever called upon by any authorised officer of the Board.

(2) A user or any person having a sub-contractor’s tax certificate in his possession, even though it may have expired or been cancelled, may be required at any time by notice served upon him or whenever called upon him by any authorised officer of the Board to surrender it to them or to that officer.

Form of voucher

29.—(1) A voucher shall be in the form numbered 715 or 715S in Schedule 1 and shall show a distinctive number and the further information specified in paragraphs (2) and (3).

(2) The further information specified in this paragraph is—

(a) in the case of an individual, the name and national insurance number of the user,

(b) in the case of an individual who is a partner in a firm, the name and national insurance number of the user, the words “Acting for” and the name of the firm, and

(c) in the case of a company, the name of the secretary or director of the company, the words “Acting for” and the name and registration number of the company.

(3) The further information specified in this paragraph is that the voucher in the form numbered 715S shall also show the weekly limit.

Restriction on issue of further vouchers in certain circumstances

30.—(1) If it appears to the inspector that the user of a sub-contractor’s tax certificate in the form 714S has used vouchers previously issued to him to obtain contract payments in excess of the weekly limit without the deduction required by section 559, the inspector may prevent any further vouchers from being issued to that user until such time as the amount produced by the calculation specified in paragraph (2) falls below the weekly limit.

(2) The calculation specified in this paragraph is—

where—

• A is the sum of all contract payments insofar as made without the deduction required by section 559 since the date of the previous issue of vouchers as mentioned in paragraph (1) above;

• B is any sums included in A representing the direct cost to any person of materials used or to be used in carrying out the construction operations to which the relevant contracts relate; and

• C is the number of weeks which have elapsed since the date of the previous issue of vouchers as mentioned in paragraph (1) above.

Surrender of voucher

31.  A user or any person having a voucher in his possession may be required at any time by notice served upon him or whenever called upon by any authorised officer of the Board to surrender it to them or to that officer.

Guarantees

32.  Any guarantee such as is referred to in subsection (3)(b) of section 562 shall be in such form and for such amount or amounts as are prescribed in Schedule 2 to these Regulations, and the guarantor shall be a bank carrying on a genuine banking business in the United Kingdom.