Provisions the documents cite: ss.57–77 — in particular s.59 (contractors), s.60 (contract payments), s.61 (deductions on account of tax), ss.63–68 (registration for gross payment or payment under deduction), s.69 (verification), s.70 (periodic returns and records), ss.72–72A (penalties), s.74 (meaning of construction operations)
What it requires
The statutory basis of CIS. s.59 — the scheme applies to any person carrying on a business that includes construction operations, to listed public bodies whose expenditure on construction operations exceeds £3,000,000 in a year, and to any other business whose expenditure on construction operations exceeds £3,000,000 in the year ending at that time. s.60 — a contract payment is a payment under a construction contract by the contractor to the sub-contractor or a nominee, excluding payments treated as employment earnings and payments to persons registered for gross payment. s.61 — on making a contract payment the contractor must deduct the relevant percentage of so much of the payment as is not shown to be the sub-contractor's direct cost of materials; the percentage is set by Treasury order and may not exceed the basic rate where the person is registered for payment under deduction, or the higher rate where not registered. ss.63–68 — registration for gross payment or for payment under deduction, its cancellation and appeals. s.69 — regulations require payers to verify a person's registration status before paying. s.70 — regulations require returns, records and information to sub-contractors, including declarations that no contract is a contract of employment and that verification was carried out, and nil returns. The detailed obligations are in the Income Tax (Construction Industry Scheme) Regulations 2005.
The instrument itself: https://www.legislation.gov.uk/ukpga/2004/12/part/3/chapter/3. The summary above is our plain-English reading, not the text of the instrument — always work from the source.
How this entry is kept current
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The 2 documents that cite it
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