|
| |
|
Registration of sub-contractors |
| |
63 | Registration for gross payment or for payment under deduction |
| |
(1) | If the Board of Inland Revenue are satisfied, on the application of an individual |
| |
or a company, that the applicant has provided— |
| |
(a) | such documents, records and information as may be required by or in |
| 5 |
accordance with regulations made by the Board, and |
| |
(b) | such additional documents, records and information as may be |
| |
required by the Inland Revenue in connection with the application, |
| |
| the Board must register the individual or company under this section. |
| |
(2) | If the Board are satisfied that the requirements of subsection (2), (3) or (4) of |
| 10 |
section 64 are met, the Board must register— |
| |
(a) | the individual or company, or |
| |
(b) | in a case falling within subsection (3) of that section, the individual or |
| |
company as a partner in the firm in question, |
| |
| 15 |
(3) | In any other case, the Board must register the individual or company for |
| |
| |
64 | Requirements for registration for gross payment |
| |
(1) | This section sets out the requirements (in addition to that in subsection (1) of |
| |
section 63) for an applicant to be registered for gross payment. |
| 20 |
(2) | Where the application is for the registration for gross payment of an individual |
| |
(otherwise than as a partner in a firm), he must satisfy the conditions in Part 1 |
| |
of Schedule 11 to this Act. |
| |
(3) | Where the application is for the registration for gross payment of an individual |
| |
or a company as a partner in a firm— |
| 25 |
(a) | the applicant must satisfy the conditions in Part 1 of Schedule 11 to this |
| |
Act (if an individual) or Part 3 of that Schedule (if a company), and |
| |
(b) | in either case, the firm itself must satisfy the conditions in Part 2 of that |
| |
| |
(4) | Where the application is for the registration for gross payment of a company |
| 30 |
(otherwise than as a partner in a firm)— |
| |
(a) | the company must satisfy the conditions in Part 3 of Schedule 11 to this |
| |
| |
(b) | if the Board of Inland Revenue have given a direction under subsection |
| |
(5), each of the persons to whom any of the conditions in Part 1 of that |
| 35 |
Schedule applies in accordance with the direction must satisfy the |
| |
conditions which so apply to him. |
| |
(5) | Where the applicant is a company, the Board may direct that the conditions in |
| |
Part 1 of Schedule 11 to this Act or such of them as are specified in the direction |
| |
| 40 |
(a) | the directors of the company, |
| |
(b) | if the company is a close company, the persons who are the beneficial |
| |
owners of shares in the company, or |
| |
(c) | such of those directors or persons as are so specified, |
| |
|
| |
|
| |
|
| as if each of them were an applicant for registration for gross payment. |
| |
(6) | See also section 65(1) (power of Board to make direction under subsection (5) |
| |
on change in control of company applying for registration etc). |
| |
(7) | In subsection (5) “director” has the meaning given by section 67 of the Income |
| |
Tax (Earnings and Pensions) Act 2003 (c. 1). |
| 5 |
65 | Change in control of company registered for gross payment |
| |
(1) | Where it appears to the Board of Inland Revenue that there has been a change |
| |
in the control of a company— |
| |
(a) | registered for gross payment, or |
| |
(b) | applying to be so registered, |
| 10 |
| the Board may make a direction under section 64(5). |
| |
(2) | The Board may make regulations requiring the furnishing of information with |
| |
respect to changes in the control of a company— |
| |
(a) | registered for gross payment, or |
| |
(b) | applying to be so registered. |
| 15 |
(3) | Section 840 of the Taxes Act 1988 (control) applies for the purposes of this |
| |
| |
66 | Cancellation of registration for gross payment |
| |
(1) | The Board of Inland Revenue may at any time make a determination cancelling |
| |
a person’s registration for gross payment if it appears to them that— |
| 20 |
(a) | if an application to register the person for gross payment were to be |
| |
made at that time, the Board would refuse so to register him, |
| |
(b) | he has made an incorrect return or provided incorrect information |
| |
(whether as a contractor or as a sub-contractor) under any provision of |
| |
this Chapter or of regulations made under it, or |
| 25 |
(c) | he has failed to comply (whether as a contractor or as a sub-contractor) |
| |
| |
(2) | Where the Board make a determination under subsection (1), the person’s |
| |
registration for gross payment is cancelled with effect from the end of a |
| |
prescribed period after the making of the determination (but see section 67(5)). |
| 30 |
(3) | The Board of Inland Revenue may at any time make a determination cancelling |
| |
a person’s registration for gross payment if they have reasonable grounds to |
| |
| |
(a) | became registered for gross payment on the basis of information which |
| |
| 35 |
(b) | has fraudulently made an incorrect return or provided incorrect |
| |
information (whether as a contractor or as a sub-contractor) under any |
| |
provision of this Chapter or of regulations made under it, or |
| |
(c) | has knowingly failed to comply (whether as a contractor or as a sub- |
| |
contractor) with any such provision. |
| 40 |
(4) | Where the Board make a determination under subsection (3), the person’s |
| |
registration for gross payment is cancelled with immediate effect. |
| |
|
| |
|
| |
|
(5) | On making a determination under this section cancelling a person’s |
| |
registration for gross payment, the Board must without delay give the person |
| |
notice stating the reasons for the cancellation. |
| |
(6) | Where a person’s registration for gross payment is cancelled by virtue of a |
| |
determination under subsection (1), the person must be registered for payment |
| 5 |
| |
(7) | Where a person’s registration for gross payment is cancelled by virtue of a |
| |
determination under subsection (3), the person may, if the Board thinks fit, be |
| |
registered for payment under deduction. |
| |
(8) | A person whose registration for gross payment is cancelled under this section |
| 10 |
may not, within the period of one year after the cancellation takes effect (see |
| |
subsections (2) and (4) and section 67(5)), apply for registration for gross |
| |
| |
(9) | In this section “a prescribed period” means a period prescribed by regulations |
| |
| 15 |
67 | Registration for gross payment: appeals |
| |
(1) | A person aggrieved by— |
| |
(a) | the refusal of an application for registration for gross payment, or |
| |
(b) | the cancellation of his registration for gross payment, |
| |
| may by notice appeal to the General Commissioners or, if the person so elects |
| 20 |
in the notice, to the Special Commissioners. |
| |
(2) | The notice must be given to the Board of Inland Revenue within 30 days after |
| |
the refusal or cancellation. |
| |
(3) | The notice must state the person’s reasons for believing that— |
| |
(a) | the application should not have been refused, or |
| 25 |
(b) | his registration for gross payment should not have been cancelled. |
| |
(4) | The jurisdiction of the Commissioners on such an appeal shall include |
| |
jurisdiction to review any relevant decision taken by the Board of Inland |
| |
Revenue in the exercise of their functions under section 63, 64, 65 or 66. |
| |
(5) | Where a person appeals against the cancellation of his registration for gross |
| 30 |
payment by virtue of a determination under section 66(1), the cancellation of |
| |
his registration does not take effect until whichever is the latest of the |
| |
| |
(a) | the abandonment of the appeal, |
| |
(b) | the determination of the appeal by the Commissioners, or |
| 35 |
(c) | the determination of the appeal by the High Court. |
| |
68 | Registration for payment under deduction: cancellation and appeals |
| |
The Board of Inland Revenue may make regulations providing for— |
| |
(a) | the cancellation, in such circumstances as may be prescribed by the |
| |
regulations, of a person’s registration for payment under deduction; |
| 40 |
(b) | appeals against a refusal to register a person for payment under |
| |
deduction or the cancellation of such registration. |
| |
|
| |
|
| |
|
Verification, returns etc and penalties |
| |
69 | Verification etc of registration status of sub-contractors |
| |
(1) | The Board of Inland Revenue may make regulations requiring persons who |
| |
make payments under contracts relating to construction operations, except in |
| |
prescribed circumstances, to verify with the Board whether a person to whom |
| 5 |
they are proposing to make— |
| |
(a) | a contract payment, or |
| |
(b) | a payment which would be a contract payment but for section 60(4), |
| |
| is registered for gross payment or for payment under deduction. |
| |
(2) | The provision that may be made by regulations under subsection (1) includes |
| 10 |
| |
(a) | for preventing a person from verifying unless such conditions as may |
| |
be prescribed have been satisfied; |
| |
(b) | as to the period for which the verification remains valid. |
| |
(3) | The Board of Inland Revenue may make regulations requiring the Board to |
| 15 |
notify persons of a prescribed description who make payments under contracts |
| |
relating to construction operations that— |
| |
(a) | a person registered for gross payment has become registered for |
| |
payment under deduction or has ceased to be registered under section |
| |
| 20 |
(b) | a person registered for payment under deduction has become |
| |
registered for gross payment or has ceased to be registered under |
| |
| |
(4) | The provision that may be made by regulations under subsection (1) or (3) |
| |
includes provision for a person to be entitled to assume, except in prescribed |
| 25 |
| |
(a) | a person verified or notified as being registered for gross payment, or |
| |
(b) | a person verified or notified as being registered for payment under |
| |
| |
| has not subsequently ceased to be so registered. |
| 30 |
(5) | In this section “prescribed” means prescribed by regulations under this section. |
| |
70 | Periodic returns by contractors etc |
| |
(1) | The Board of Inland Revenue may make regulations requiring persons who |
| |
make payments under construction contracts— |
| |
(a) | to make to the Board, at such times and in respect of such periods as |
| 35 |
may be prescribed, returns relating to such payments; |
| |
(b) | to keep such records as may be prescribed relating to such payments; |
| |
(c) | to provide such information as may be prescribed, at such times as may |
| |
be prescribed, to persons to whom such payments are made or to such |
| |
of those persons as are of a prescribed description. |
| 40 |
(2) | The provision that may be made by regulations under subsection (1)(a) |
| |
includes provision requiring, except in such circumstances as may be |
| |
| |
(a) | the person making a return to declare in the return that none of the |
| |
contracts to which the return relates is a contract of employment; |
| 45 |
|
| |
|
| |
|
(b) | the person making a return to declare in the return that, in the case of |
| |
each person to whom a payment to which the return relates is made, he |
| |
has complied with the requirements of any regulations made under |
| |
section 69(1) (verification of registration status); |
| |
(c) | returns to contain such other information and to be in such form as may |
| 5 |
| |
(d) | a return to be made where no payments have been made in the period |
| |
to which the return relates. |
| |
(3) | The Board of Inland Revenue may make regulations with respect to— |
| |
(a) | the production, copying and removal of, and the making of extracts |
| 10 |
from, any records kept by virtue of any such requirement as is referred |
| |
to in subsection (1)(b), and |
| |
(b) | rights of access to, or copies of, any such records which are removed. |
| |
(4) | Regulations under this section may make provision— |
| |
(a) | for or in connection with enabling a person who makes payments |
| 15 |
under construction contracts to appoint another person (a “scheme |
| |
representative”) to act on his behalf in connection with any |
| |
requirements imposed on him by regulations under this section, and |
| |
(b) | as to the rights, obligations or liabilities of scheme representatives. |
| |
(5) | In this section “prescribed” means prescribed by regulations under this section. |
| 20 |
71 | Collection and recovery of sums to be deducted |
| |
(1) | The Board of Inland Revenue must make regulations with respect to the |
| |
collection and recovery, whether by assessment or otherwise, of sums required |
| |
to be deducted from any payments under section 61. |
| |
(2) | The regulations may include any matters with respect to which PAYE |
| 25 |
| |
(3) | Interest required to be paid by the regulations— |
| |
(a) | is to be paid without any deduction of income tax, and |
| |
(b) | is not to be taken into account in computing any income, profits or |
| |
losses for any tax purposes. |
| 30 |
| |
If a person, for the purpose of becoming registered for gross payment or for |
| |
payment under deduction,— |
| |
(a) | makes any statement, or furnishes any document, which he knows to |
| |
be false in a material particular, or |
| 35 |
(b) | recklessly makes any statement, or furnishes any document, which is |
| |
false in a material particular, |
| |
he shall be liable to a penalty not exceeding £3,000. |
| |
| |
73 | Regulations under this Chapter: supplementary |
| 40 |
(1) | The Board of Inland Revenue may by regulations make such other provision |
| |
for giving effect to this Chapter as they consider necessary or expedient. |
| |
|
| |
|
| |
|
(2) | The provision that may be made by regulations under subsection (1) includes |
| |
provision for or in connection with modifying the application of this Chapter |
| |
| |
(a) | a person acts as the agent of a contractor or sub-contractor; |
| |
(b) | a person’s right to payments under a construction contract is assigned |
| 5 |
or otherwise transferred to another person. |
| |
(3) | Regulations under this Chapter may make different provision for different |
| |
| |
(4) | Any power under this Chapter to make regulations authorising or requiring a |
| |
document (whether or not of a particular description), or any records or |
| 10 |
information, to be given or requested by or to be sent or produced to the Board |
| |
of Inland Revenue includes power— |
| |
(a) | to authorise the Board to nominate a person who is not an officer of the |
| |
Board to be the person who on behalf of the Board— |
| |
(i) | gives or requests the document, records or information; or |
| 15 |
(ii) | is the recipient of the document, records or information; and |
| |
(b) | to require the document, records or information, in cases prescribed by |
| |
or determined under the regulations, to be sent or produced to the |
| |
address (determined in accordance with the regulations) of the person |
| |
nominated by the Board to receive it on their behalf. |
| 20 |
74 | Meaning of “construction operations” |
| |
(1) | In this Chapter “construction operations” means operations of a description |
| |
specified in subsection (2), not being operations of a description specified in |
| |
subsection (3); and references to construction operations— |
| |
(a) | except where the context otherwise requires, include references to the |
| 25 |
work of individuals participating in the carrying out of such |
| |
| |
(b) | do not include references to operations carried out or to be carried out |
| |
otherwise than in the United Kingdom (or the territorial sea of the |
| |
| 30 |
(2) | The following operations are, subject to subsection (3), construction operations |
| |
for the purposes of this Chapter— |
| |
(a) | construction, alteration, repair, extension, demolition or dismantling of |
| |
buildings or structures (whether permanent or not), including offshore |
| |
| 35 |
(b) | construction, alteration, repair, extension or demolition of any works |
| |
forming, or to form, part of the land, including (in particular) walls, |
| |
roadworks, power-lines, electronic communications apparatus, aircraft |
| |
runways, docks and harbours, railways, inland waterways, pipe-lines, |
| |
reservoirs, water-mains, wells, sewers, industrial plant and |
| 40 |
installations for purposes of land drainage, coast protection or defence; |
| |
(c) | installation in any building or structure of systems of heating, lighting, |
| |
air-conditioning, ventilation, power supply, drainage, sanitation, water |
| |
supply or fire protection; |
| |
(d) | internal cleaning of buildings and structures, so far as carried out in the |
| 45 |
course of their construction, alteration, repair, extension or restoration; |
| |
(e) | painting or decorating the internal or external surfaces of any building |
| |
| |
|
| |
|
| |
|
(f) | operations which form an integral part of, or are preparatory to, or are |
| |
for rendering complete, such operations as are previously described in |
| |
this subsection, including site clearance, earth-moving, excavation, |
| |
tunnelling and boring, laying of foundations, erection of scaffolding, |
| |
site restoration, landscaping and the provision of roadways and other |
| 5 |
| |
(3) | The following operations are not construction operations for the purposes of |
| |
| |
(a) | drilling for, or extraction of, oil or natural gas; |
| |
(b) | extraction (whether by underground or surface working) of minerals |
| 10 |
and tunnelling or boring, or construction of underground works, for |
| |
| |
(c) | manufacture of building or engineering components or equipment, |
| |
materials, plant or machinery, or delivery of any of these things to site; |
| |
(d) | manufacture of components for systems of heating, lighting, air- |
| 15 |
conditioning, ventilation, power supply, drainage, sanitation, water |
| |
supply or fire protection, or delivery of any of these things to site; |
| |
(e) | the professional work of architects or surveyors, or of consultants in |
| |
building, engineering, interior or exterior decoration or in the laying- |
| |
| 20 |
(f) | the making, installation and repair of artistic works, being sculptures, |
| |
murals and other works which are wholly artistic in nature; |
| |
(g) | signwriting and erecting, installing and repairing signboards and |
| |
| |
(h) | the installation of seating, blinds and shutters; |
| 25 |
(i) | the installation of security systems, including burglar alarms, closed |
| |
circuit television and public address systems. |
| |
(4) | The Treasury may by order made by statutory instrument amend either or both |
| |
of subsections (2) and (3) by— |
| |
| 30 |
| |
| |
| any description of operations. |
| |
(5) | No statutory instrument containing an order under subsection (4) shall be |
| |
made unless a draft of the instrument has been laid before and approved by a |
| 35 |
resolution of the House of Commons. |
| |
75 | Meaning of “the Inland Revenue” etc and delegation of Board’s functions |
| |
(1) | In this Chapter “the Inland Revenue” means any officer of the Board of Inland |
| |
| |
(2) | In this Chapter “the Board of Inland Revenue” means the Commissioners of |
| 40 |
Inland Revenue (as to which, see in particular the Inland Revenue Regulation |
| |
| |
(3) | The Board of Inland Revenue may make regulations providing for any of the |
| |
following to be done on behalf of the Board— |
| |
(a) | the registration of persons under section 63; |
| 45 |
(b) | the giving of directions under section 64(5); and |
| |
|
| |
|