{
  "url": "https://openlegislation.uk/income-tax-construction-industry-scheme-regulations-2005/note",
  "json_url": "https://openlegislation.uk/income-tax-construction-industry-scheme-regulations-2005/note.json",
  "legislation": "uksi/2005/2045",
  "legislation_title": "The Income Tax (Construction Industry Scheme) Regulations 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-construction-industry-scheme-regulations-2005",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations make provisions in relation to the construction industry scheme established by Chapter 3 of the Finance Act 2004 (c. 12) (“the Act”).\nPart 1 (introduction) contains regulations 1 and 2, this is introductory and provides the definition of terms the regulations use.\nPart 2 (contractors) contains regulation 3 to 6 which deal with contractors. This Part makes provisions for multiple contractor elections whereby a contractor may elect to be treated as a different contractor in relation to different groups of sub-contractors. Provision is also made requiring a contractor to make a monthly return in relation to all payments made to sub-contractors in that month, the appointment of a scheme representative to act on a contractor’s behalf, and the verification by a contractor of a sub-contractor’s registration status to determine whether to make payments gross or net.\nPart 3 (payment and recovery of amounts deducted under section 61) contains regulations 7 to 17. These make provisions in relation to payments by contractors of amounts deducted from contract payments on account of tax in accordance with section 61 of the Act, provisions in relation to and recovery of unpaid amounts, repayment of over-payments and interest on amounts overdue and amounts overpaid.\nPart 4 (payments excepted from section 60) contains regulations 18 to 24 which make provisions excepting certain payments from the definition of contract payment within section 60 of the Act. The exceptions are for small payments, payments in relation to work carried out on land owned by the person to whom the payment is made, reverse premiums, payments made as agent of a local education authority, payments made in respect of property used for the purposes of the business of the person making the payment, payments made by charities and by public bodies under private finance transactions.\nPart 5 (registration of sub-contractors) contains regulations 25 and 26 which make provisions in relation to the registration of sub-contractors for gross payment or for payment under deduction, and for the cancellation of such registration.\nPart 6 (conditions to be satisfied for gross payment) contains regulations 27 to 37, these set out the conditions to be satisfied in order for a sub-contractor to be registered for gross payment. Provisions are made in respect of the business test, the turnover test and the compliance test.\nPart 7 (electronic communications) contains regulations 38 to 49. These deal with the delivery of information and making payments by electronic means.\nPart 8 (supplementary provisions) contains regulations 50 to 60. These make provisions for the delegation of functions by the Commissioners for Her Majesty’s Revenue and Customs, inspection of a contractor’s or sub-contractor’s records, information as to the change of control of a close company, death of a contractor, service of notices by post, application of sums deducted under section 61 of the Act in the discharge of liabilities of the sub-contractor, certificates of sums due, payments by cheque, appeals and saving and revocation of regulations.\nSchedule 1 contains general savings in relation to continuity of the law and specific savings in relation to interest on unpaid or overpaid amounts in respect of a tax year ending on or before 5th April 1992, in respect of a tax year ending on or before 5th April 1993 respectively.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2005/2045/note",
    "retrieved_at": "2026-10-29T04:55:02.503189+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}