Regulation 3 Multiple contractorsI1
United Kingdom
A contractor may elect, for the purposes of these Regulations, to be treated as different contractors in relation to different groups of sub-contractors.
Where the contractor makes an election these Regulations apply as if—
in respect of each group the contractor were a different contractor; and
each group constituted all the sub-contractors to whom the contractor makes payments under contracts relating to construction operations.
While an election is in force, a contractor must allocate any new sub-contractors to one of the groups.
An election must be made by notice to an officer of Revenue and Customs containing—
such information as may be necessary to identify the groups of sub-contractors, and
a certificate that the contractor makes no payments under contracts relating to construction operations other than to sub-contractors in the groups so identified.
A contractor must, subject to paragraph (6), make an election before the beginning of the tax year for which it is to have effect.
A contractor who acquires the whole or part of any business of another contractor may, within 90 days of the acquisition, elect—
to be treated as a different contractor in relation to the acquired sub-contractors, or two or more different contractors in relation to groups of the acquired sub-contractors, whether or not an election is already in force in respect of the existing sub-contractors, or
to add some or all of the acquired sub-contractors to existing groups of sub-contractors in respect of whom an election is already in force,
and such election has effect for the tax year in which the acquisition takes place.
In paragraph (6)—
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“business” includes any trade, concern or undertaking;
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“acquired sub-contractor” means a sub-contractor who contracted with the acquired business.
An election continues in effect until revoked by notice given to an officer of Revenue and Customs.
A notice of revocation must be given before the beginning of the tax year for which the election is to be revoked, but the revocation of an election does not prevent the making of a new election for that or a later tax year.
An election which has not yet come into effect may be revoked at any time before the beginning of the tax year for which it is to have effect.