PART IIPAYMENTS TO SUB-CONTRACTORS TO WHICH SECTION 559 APPLIES

Multiple contractors4

1

Where a contractor so elects, he shall be treated for all the purposes of this Part of these Regulations as if in respect of each group of sub-contractors specified in the election he were a different contractor, that is to say, as if each group of sub-contractors constituted all the sub-contractors to whom he makes payments to which section 559 applies.

2

An election under this regulation must be made by notice to the inspector and any such notice shall contain—

a

such information as may be necessary to identify the groups of sub-contractors concerned, and

b

a certificate that the contractor makes no payment to which section 559 applies other than to sub-contractors in the groups so identified.

3

Subject to paragraph (4), an election shall have effect for the year following that in which it is made and, unless revoked, shall also have effect for any subsequent year.

4

Where a contractor acquires the whole or a part of the undertaking of another contractor and within 90 days of the acquisition elects under this regulation to be treated as a separate contractor in respect of the group of sub-contractors with whom he contracts for the purposes of the acquired undertaking and in respect of all other sub-contractors to whom he makes payments or, where an election is already in force in respect of them, each group of sub-contractors identified in the existing election, the new election shall have effect for the year in which the acquisition takes place and any subsequent year.

5

An election in force for any year may be revoked by notice to the inspector and any such revocation shall have effect for the year following that in which notice of it is given and any subsequent year, but shall not prejudice the making of a fresh election for that following or any subsequent year.